California Proposition 43, Bonds for Parks and Recreation (1986)
Proposition 43 authorized a bond issue of $100 million for "acquiring, developing, improving, rehabilitating, or restoring urgently needed local and regional parks, beaches, recreational areas and facilities, and historical resources."
Under the proposal, the California State Department of Parks and Recreation divided the bond money among counties, cities, and districts, based on their population. Counties and certain park districts received 40% of the grant money. Cities and certain other districts receive 60% of the grant money. Proposition 43 required grant recipients to contribute 25% toward the cost of property bought with the bond money.
The fiscal estimate provided by the California Legislative Analyst's Office said:
Paying Off the Bonds. The state would make principal and interest payments over a period of up to 20 years from the state's General Fund. The average payment would be about $9 million each year if the bonds were sold at an interest rate of 7.5 percent.
Borrowing Costs for Other Bonds. By increasing the amount which the state borrows, this measure may cause the state and local governments to pay more under other bond programs. These costs cannot be estimated.
Lower State Revenues. The people who buy these bonds are not required to pay state income tax on the interest they earn. Therefore, if California taxpayers buy these bonds instead of making other taxable investments, the state would collect less taxes. This loss of revenue cannot be estimated.
Operational Costs. The local agencies that acquire or improve property with bond funds would have to pay the additional costs to operate those properties. These costs may be offset partly by revenues from the new properties, such as entrance fees. These additional costs cannot be estimated.
Costs to Administer Grants. It would cost the Department of Parks and Recreation $500,000 to $600,000 to administer the grant program. This measure provides $400,000 to the department for these costs. The remaining $100,000 to $200,000 probably would come from the state's General Fund.
Path to the ballot
The California State Legislature voted to put Proposition 43 on the ballot via Senate Bill 806 (Statutes of 1986, Ch. 5).