California Proposition 57 (2004)
From Ballotpedia
Contents |
California Proposition 57, or the Economic Recovery Bond Act, was on the March 2, 2004 statewide primary ballot in California as a legislatively-referred state statute, where it was approved.
- 4,056,313 (63.4%)
- 2,348,910 (36.6%)
Proposition 57 authorized the state to sell $15,000,000,000 in long-term bonds to pay off accumulated deficits. Proposition 57 would only have gone into effect if Proposition 58 (the California Balanced Budget Act) also passed, which it ultimately did.
Supporters of Prop. 57 spent over $8.4 million to pass it, while opponents spent about $400,000; so that altogether, supporters outspent opponents by about 20-to-1.
Propositions 57 and 58 were the centerpiece of Gov. Arnold Schwarzenegger's plan to resolve California's budget problems. Schwarzenegger campaigned heavily for the propositions' passage. Schwarzenegger's rival in the 2003 recall election, state senator Tom McClintock, was one of the chief opponents of Prop. 57.
Official summary
- A one time Economic Recovery Bond of up to fifteen billion dollars ($15,000,000,000) to pay off the state's accumulated General Fund deficit as of June 30, 2004.
- The Economic Recovery Bond will only be issued if the California Balanced Budget Act is also approved by the voters.
- The bonds will be secured by existing tax revenues and by other revenues that could be deposited in a special fund.
Fiscal impact estimate
The California Legislative Analyst's Office provided an estimate of net state and local government fiscal impact for Proposition 58. That estimate was:
- One-time increase, compared to a previously authorized bond, of up to $4 billion to reduce the state's budget shortfall.
- Annual debt-service savings over the next few years.
- Above effects offset in subsequent years by higher annual debt-service costs due to this bond's larger size and the longer time period for its repayment.
Campaign funding
The "Yes on 57" group spent just over $8.2 million to urge voters to adopt Proposition 57. $5.3 million of that was from Arnold Schwarzenegger's California Recovery Team.[1]
By comparison, the group opposing Prop 57 spent a mere $406,634.[2] 70% of that came from just one donor, Stephen Bing, who chipped in $284,750.00.
Path to the ballot
Proposition 57 was voted onto the ballot by the California State Legislature via ABX5 9 (Proposition 57).
| Chamber | Ayes | Noes |
|---|---|---|
| Assembly | 65 | 13 |
| Senate | 27 | 12 |
External links
- Voter Information Guide with text of Proposition 57
- March 2, 2004 ballot proposition election results
- LAO analysis of Proposition 57
- Smart Voter on Proposition 57
Notes
- ↑ Follow The Money on Proposition 57: Donors in favor
- ↑ Follow The Money on Proposition 57: Donors in opposition
