NO ON 2 AND 4:
$20 Billion In Debt for School Buildings, Climate Projects

State lawmakers blew a $100 billion budget surplus and now face multiple years of budget deficits, but rather than slow down their spending, they’ve decided to borrow another $20 billion to keep it going.

Proposition 2 on the November ballot asks voters to approve $10 billion in new bond debt for school buildings, and Proposition 4 seeks approval for $10 billion to fund an assortment of programs said to be needed to fight climate change. Bonds are the most expensive way to pay for anything, nearly double the cost of pay-as-you-go from the annual budget. The Howard Jarvis Taxpayers Association recommends a “No” vote on Propositions 2 and 4.

California already owes investors more than $78 billion in bond debt. Bonds are borrowed money that must be paid back, plus interest, even if the state has to cut vital programs to do it. Governor Gavin Newsom recently declared a budget emergency because the state spends more than it takes in.

Statewide general obligation bonds are paid back from the general fund and don’t automatically raise taxes. However, Proposition 2 will result in higher local property taxes, because school districts must come up with a “local match” of funds in order to qualify to receive state bond funds. That will lead to districts issuing new local school bonds, which are paid for by adding new charges to property tax bills.

Proposition 2 would pay for construction of new schools at a time when enrollment is declining. According to the state Department of Finance, “California experienced the 6th consecutive decrease in total Public K-12 Enrollment in the 2022–23 school year,” and over the next ten years, if current trends hold, “a further decline of 661,500 is projected” by 2032–33. Further, enrollment in the state’s community colleges has been in decline since 2019. The Public Policy Institute of California projects that community college enrollment “will not recover to pre-pandemic levels.”

Proposition 4 is $10 billion of debt to pay for climate-related programs. That includes salaries for the groups that receive grants from the borrowed money.

High-priority programs supporting clean water and wildfire prevention should be funded in the budget with the tax dollars you already pay, not with costly borrowing.

Bonds are an appropriate way to finance a necessary project that will still be there in 30 years when the bonds are paid off, but Proposition 4 is simply $10 billion of spending on the credit card. With interest, a $10 billion bond will cost taxpayers an estimated $18 billion.

Vote NO on Propositions 2 and 4.

See all of HJTA’s November ballot measure recommendations >