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California Proposition 46, Housing Projects Bond Measure (2002)
| California Proposition 46 | |
|---|---|
 | |
| Election date November 5, 2002 | |
| Topic Bond issues and Housing | |
Status Approved | |
| Type Bond issue | Origin State Legislature |
California Proposition 46 was on the ballot as a bond issue in California on November 5, 2002. It was approved.
A "yes" vote supported issuing $2.1 billion in bonds for housing projects, including multifamily, individual and farmworker housing. |
A "no" vote opposed issuing $2.1 billion in bonds for housing projects, including multifamily, individual and farmworker housing. |
Election results
|
California Proposition 46 |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
|
|
4,064,648 | 57.53% | ||
| No | 3,000,154 | 42.47% | ||
Overview
Proposition 46 authorized the issuance of $2.1 billion in general obligation bonds for housing projects.[1]
Text of measure
Ballot title
The ballot title for Proposition 46 was as follows:
| “ | Housing and Emergency Shelter Trust Fund Act of 2002. | ” |
Ballot summary
The ballot summary for this measure was:
| “ |
• Creates trust fund to: provide shelters for battered women; clean and safe housing for low-income senior citizens; emergency shelters for homeless families with children; housing with social services for homeless and mentally ill; repairs/accessibility improvements to apartments for families and handicapped citizens; military veteran homeownership assistance; and security improvements/repairs to existing emergency shelters. • Funded by bond issue of two billion one hundred million dollars ($2,100,000,000). • Makes cities and counties eligible to receive specified funds. • Subjects expenditures to independent audit. • Appropriates money from state General Fund to repay bonds. | ” |
Full Text
The full text of this measure is available here.
Fiscal impact
- See also: Fiscal impact statement
The fiscal estimate provided by the California Legislative Analyst's Office said:[1]
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Support
Official arguments
The official arguments submitted in support of Proposition 46 were signed by Pete Major, executive director Habitat For Humanity, Orange County; Barbara Inatsugu, president, League of Women Voters of California; and DR. Kathie Mathis, executive director of the Association to Aid Victims of Domestic Violence:[1]
| “ | YES on Proposition 46 will provide emergency shelters for battered women, affordable housing for seniors and low income families, and shelters with social services for the homeless. That is why the Congress of California Seniors, the League of Women Voters of California, and the Association to Aid Victims of Domestic Violence strongly urge a YES vote on Proposition 46.
Importantly, this bond measure will be funded out of existing state resources without raising taxes. In our communities, the problems of housing affordability, homelessness, and domestic violence have gotten progressively worse. According to the State Department of Housing, over 360,000 Californians are homeless and the numbers are rising. Last year, 23,000 women and children were turned away from domestic violence shelters because they were full. Housing affordability for working families in California is at historic lows. Safe shelter is fundamental to a decent life. YES on Proposition 46 will:
Additionally, Proposition 46 provides affordable housing for working people, accessibility improvements to apartments for disabled Californians, and loan assistance for military veterans, teachers, police, and firefighters. Proposition 46 also creates 276,000 jobs and helps improve the state’s economy. Allows Seniors to Live Independently: 'This measure allows seniors to live in an apartment or home without the fear of being institutionalized in a nursing home. We strongly urge a YES on 46.'—Congress of California Seniors Helps Battered Women: 'Most cities in California don’t have adequate shelters for women and children who have been beaten and abused. Proposition 46 begins to fix this bad situation.'—Statewide California Coalition for Battered Women and California State Sheriffs Association Keeps Kids in School: 'Proposition 46 provides shelter for thousands of homeless children, allowing them to attend neighborhood schools without having to worry about a roof over their head.'—California Teachers Association Independent Audits and Accountability: 'This measure requires independent audits and contains strict accountability provisions to ensure the funds are used as promised. Every city and county will be eligible to receive housing funds.'—California Chamber of Commerce Loan Assistance for Veterans: 'Our veterans have protected American interests at home and around the world. This measure makes available low-interest loans so they can purchase their first home.'—Vietnam Veterans of California, Inc. Critical Need For Housing and Emergency Shelters: 'Proposition 46 provides shelter for those who need help the most—battered women, homeless mothers with children and disabled seniors.'—Habitat For Humanity, Orange County Yes on 46 provides emergency shelter and housing relief without raising taxes. It will help the 23,000 women and children turned away from domestic violence centers because they were full. It requires independent audits to ensure the funds are spent correctly. We urge you to vote YES on Proposition 46. Visit our website prop46yes.org.[2] |
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Opposition
Official arguments
The official arguments submitted in opposition to Proposition 46 were signed by Senator Ray Haynes (R), chair State Senate Constitutional Amendments Committee; Assemblyman Anthony Pescetti (R), Vice-Chair Assembly Utilities and Commerce Committee; and Jon Coupal, president of Howard Jarvis Taxpayers Association:[1]
| “ |
What do families, major corporations and governments have in common? They all collapse when they have too much debt. California is already on the brink of bankruptcy and now is not the time to be going further into debt. Passing bonds only adds to the state’s debts. Here is a snapshot of California’s current situation:
In the past two years, California has borrowed or approved more than $12.9 billion in 27 different bonds. Paying it back, however, will cost you a whole lot more. Bonds are the government’s equivalent of a high-interest credit card. Government borrows money and then taxpayers pay back that debt, meaning increased taxes, rates and fees. Even worse, your children will be paying off this bond long after the money has been spent. With every pile of debt California takes on, our credit rating drops, and our interest rates go up—forcing you to pay even more for government’s mistakes and whims. So why is this particular housing bond not a good idea? Unfortunately, it does little to truly address housing issues in California. This bond has a $2.1 billion face value. It will cost you at least $3.5 billion to pay it off. Of this $2.1 billion, only $290 million, about 15%, is put into the 'Self-Help' fund that is supposed to help low-income, first-time homebuyers with down payments, supposedly a major selling point for this bond. Of that, only $12.5 million is actually going to be used to help with down payments. To make matters worse, to get a part of the $12.5 million (one-half of one percent of the bond) first-time homebuyers have to purchase their houses in government-approved locations. None of these areas are the high-income areas where it is so hard to purchase a home. This program only applies to major urban centers and many of the least desirable places to live and raise children. So— the very small piece of this bond that is supposed to help you buy a house has so many strings that you will probably never qualify. If we want to improve housing availability in California, we first need to make it easier to construct new homes. We need to reduce the red tape that homebuilders have to go through to build new housing and make it easier to build condominiums. This bond does NOTHING to address the barriers that exist to providing affordable, abundant housing in California. Sacramento politicians hope you will overlook their fiscal mismanagement and allow California to go further into debt without forcing them to confront the true reasons we do not have adequate housing. Do not allow this. Vote no and force Sacramento to set priorities and address this crisis in a responsible way.[2] |
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Path to the ballot
- See also: Authorizing bonds in California
The California State Legislature is required to pass bond acts by a two-thirds (66.67%) vote of all the members in both legislative chambers. The governor must also sign the bond act. Proposition 46 was voted onto the ballot by the California State Legislature via Senate Bill 1227 of the 2001–2002 Regular Session (Chapter 26, Statutes of 2002).
| Votes in legislature to refer to ballot | ||
|---|---|---|
| Chamber | Ayes | Noes |
| Assembly | 54 | 21 |
| Senate | 27 | 11 |
See also
External links
- Official Voter Guide
- Full text of Proposition 46
- Smart Voter information about Prop 46
- Top Ten Donors to Proposition 46
Footnotes
