California Proposition 151, Childcare Facilities Bond Measure (1990)

California Proposition 151
Election date November 6, 1990
Topic Bond issues
Status d Defeated
Type Bond issue	Origin State Legislature

California Proposition 151 was on the ballot as a bond issue in California on November 6, 1990. It was defeated.

A "yes" vote supported authorizing the state to issue $30 million in bonds for the construction of childcare facilities.

A "no" vote opposed authorizing the state to issue $30 million in bonds for the construction of childcare facilities.

Election results

California Proposition 151
Result		Votes	Percentage
Yes		3,360,443	47.46%
No		3,719,971	52.54%

Results are officially certified.

Source

Text of measure

Ballot title

The ballot title for Proposition 151 was as follows:

“

Child Care Facilities Financing Act of 1990

”

Ballot summary

The ballot summary for this measure was:

“

This act provides for a bond issue of thirty million dollars ($30,000,000) to provide funds for child care facilities.

”

Full Text

The full text of this measure is available here.

Fiscal impact

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

“

Direct Costs of Paying Off the Bonds. The state would receive loan repayments under the child care facilities loan program discussed above. These repayments, however, would be used to make additional loans, and not to repay the general obligation bonds. As a result, the state's General Fund would be responsible for the principal and interest payments on the bonds, which typically would be paid off over a period of about 20 years. Generally, the interest on bonds issued by the state is exempt from both federal and state taxes. While the interest on these bonds would be exempt from state taxes, it is not clear whether the state would issue the bonds as federally taxable bonds or as federally tax-exempt bonds. This will depend on decisions about issuing the bonds made by the State Treasurer's Office in conjunction with the Child Care Facilities Authority. If the bonds are subject to federal taxes, the interest rate on these bonds would be higher than on most other state bonds. If the authorized bonds are sold at an interest rate of 9.5 percent, the state General Fund cost would be about $60 million to pay off both the principal ($30 million) and the interest ($30 million). The average payment would be about $2.5 million per year. If the bonds are not subject to federal taxes, and all of the bonds authorized by this measure are sold at an interest rate of 7.5 percent, the state General Fund cost would be about $55 million to pay off both the principal ($30 million) and the interest ($25 million). The average payment for principal and interest would be about $2.3 million per year. Costs to Administer the Program. The Child Care Facilities Authority may use up to $3 million of the bond proceeds to pay the costs of administering the program. To the degree feasible, the authority is required to charge loan recipients a surcharge sufficient to recover the costs of program administration. The annual costs for administering the program cannot be estimated. Costs to Local Governments. To the extent that local governments (including school districts) receive child care facilities loans, they would incur loan repayment costs. The measure provides that repayments shall be based on the principal and interest costs of the general obligation bonds, plus administrative costs. Because it is not known what proportion of the bond proceeds would be allocated to local government agencies, the exact magnitude of these costs cannot be estimated. The local governments may be able to use the child care fees charged to parents to cover part or all of their loan repayment costs.

”

Path to the ballot

See also: Signature requirements for ballot measures in California

A simple majority vote was needed in each chamber of the California State Legislature to refer the measure to the ballot for voter consideration.

See also

1990 Measures

• 1990 Measures
• Education on the ballot
• Bond issues on the ballot
• 1990 legislative sessions

California

• California ballot measures
• California ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• California Voter Guide (November 1990)