California Proposition 76, Bonds for Homes and Farms for Veterans (June 1988)

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California Proposition 76 was on the June 7, 1988 statewide primary ballot in California as a legislatively-referred bond act where it was approved.

Proposition 76 authorized $510 million in general obligation bonds to provide farm and home aid for California's veterans.

Election results

Proposition 76
ResultVotesPercentage
Approveda Yes 3,607,813 67.57%
No1,731,88132.43%

Text of measure

Logo of the Cal Vet loans program

Title

The ballot title was:

Veterans Bond Act of 1988.

Summary

The official summary said:

"This act provides for a bond issue of five hundred ten million dollars ($510,000,000) to provide farm and home aid for California veterans."

Fiscal impact

See also: Fiscal impact statement

The fiscal estimate provided by the California Legislative Analyst's Office said:

  • Direct Cost of Paying Off the Bonds. The bonds authorized by this measure probably would be paid off over a period of up to 25 years. Assuming all of the authorized bonds are sold at an interest rate of 7.5 percent, the cost would be about $1.1 billion to pay off both the principal ($510 million) and interest (about $610 million). The average payment for principal and interest would be about $45 million per year.
  • Throughout its history, the Cal-Vet program has been totally supported by the participating veterans, at no direct cost to the taxpayer. However, if the payments made by those veterans participating in the program do not fully cover the principal and interest payments on the bonds, the state's taxpayers would pay the difference.
  • 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.
  • Impact on 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.

Path to the ballot

The California State Legislature voted to put Proposition 76 on the ballot in Assembly Bill 69 (Statutes of 1988, Ch. 26).

Votes in legislature to refer to ballot
Chamber Ayes Noes
Assembly 77 0
Senate 32 1
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External links


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