California Proposition 80, Construction Bonds for New Prisons (1988)
Proposition 80 authorized a bond issue of $817 million to provide funds to expand capacity in the California prison system, including county jails and Youth Authority facilities.
Text of measure
The ballot title was:
The official summary said:
- "This act provides for a bond issue of eight hundred seventeen million dollars ($817,000,000) to provide urgently needed funds to relieve overcrowding in the state's prisons, county jails, and Youth Authority facilities through new construction."
- See also: Fiscal impact statement
The fiscal estimate provided by the California Legislative Analyst's Office said:
- Direct Cost of Paying Off the Bonds. For these types of bonds, the state typically would make principal and interest payments from the state's General Fund over a period of about 20 years. If all of the authorized bonds were sold at an interest rate of 7.5 percent, the cost would be about $1.5 billion to pay off the principal ($817 million) and interest (about $650 million). The average payment would be about $70 million per year.
- 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.
- 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 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 80 on the ballot with Senate Bill 468 (Statutes of 1988, Ch. 43), as amended by SB 406 (Statutes of 1988, Ch. 386).
|Votes in legislature to refer to ballot|
- PDF of the November 8, 1988 ballot proposition voter guide
- California Law Library, November 8, 1988 ballot propositions
- Hastings California I&R database