3,991,044 / 63.3% Yes votes ...... 2,312,254 / 36.7% No votes

See Also: Index of all Propositions

The Economic Recovery Bond will only be issued if the California Balanced Budget Act (Proposition 58) is also approved by the voters.

The bonds will be secured by existing tax revenues and by other revenues that could be deposited in a special fund.

Near-Term Savings: The increased amount would provide the state additional one-time funds to address its budget shortfall. The state would also realize near-term savings related to debt service on the $15 billion bond measure. This is because the payments would be based on one-quarter cent of annual sales taxes instead of one-half cent. As a result, annual General Fund costs would be one-half of the currently authorized bond for the next few years.

Longer-Term Costs: The near-term savings would be offset by higher costs in the longer term. This is because the proposed bond would be larger ($15 billion versus $10.7 billion) and it would take longer to repay, specifically between 9 and 14 years, compared to a 5-year period for the currently authorized bond.

Meaning of Voting Yes/No

A YES vote of this measure means:

A YES vote on this measure means: The state would sell $15 billion in bonds to pay existing budgetary obligations.

A NO vote of this measure means:

A NO vote on this measure means: The state would not sell $15 billion in bonds, but could instead sell bonds previously authorized by the Legislature to pay a smaller level of existing budgetary obligations.

Secretary of State

• Live Election Returns - also available by county; returns also posted to this Smart Voter page
• Voter Information Guide for Proposition 57
• Cal-Access Campaign Finance Information

• Detailed analysis of Prop 57
• An Overview of State Bond Debt

League of Women Voters - Analysis

• Easy Voter Guide for Proposition 57
• Easy Voter Guide - Download the guide in English, Spanish, Chinese, Vietnamese, or Korean
• Pros & Cons of Proposition 57 - or print all propositions on one page
• El Pro y El Contra: Proposition 57 (en espaņol) - or print all propositions on one page
• In Depth Analysis of Proposition 57 - for those who want more

• Background Information on Ballot Measures - Learn about California Law-Making and Your Vote
• Criteria for Evaluating Ballot Propositions
• Initiative & Referendum Process

• Analysis of Props 57 & 58 - (PDF file)

LWV Pros & Cons Public Meetings

• Come to a meeting in your community where League experts discuss all state ballot propositions giving a nonpartisan analysis. Consult your Smart Voter county page for dates, times and locations.

KQED San Francisco 88.5FM

• FORUM discusses Propositions 57 and 58 - on Feb. 24. Also listen to the California Report on Feb. 17.

• Key anti-tax groups like Prop. 57 - Saturday, February 28, 2004
• Buffett, Schwarzenegger unite to back bond issue - Thursday, February 26, 2004
• Bond measure gaining favor - Tuesday, February 24, 2004
• Governor has lots riding on bond package - Sunday, February 15, 2004
• Democrats back bond measure - Wednesday, February 11, 2004
• Governor to launch TV ads for bonds - Sunday, February 8, 2004

Supporters

• Join Arnold - Phone: 916-442-7757

• Senator Tom McClintock - Phone: 916-448-9321

Proposition 57 provides for a fund of up to $5 billion that can be used to pay these bonds off early. It also provides for a reserve of at least $8 billion, which can be used to prevent future deficits.

Without the Proposition 57 bonds, the State of California may be out of cash by June 2004. If so, the only choices will be to drastically increase taxes. These bonds will let us refinance our inherited debt and give the state time to deal with its ongoing structural deficit.

Proposition 57, and the California Balanced Budget Act, Proposition 58, together will give California's leaders the tools necessary to restore confidence in the fiscal management of the State.

This will not buy a single school, road or park, nor will it put a single cop on the street or relieve any traffic congestion. It simply papers over the gigantic deficit that Sacramento's politicians created in the first place.

Since 1849, California's Constitution has forbidden bonds like this from being used to paper over deficit spending. Long-term bonds are supposed to be used for schools, parks, highways and water projects that will serve coming generations.

In order to put this proposition on the ballot, these same politicians also propose to void this historic constitutional requirement by asking the voters to pass Proposition 58, cynically named "The California Balanced Budget Act."