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League of Women Voters of California Education Fund Evaluating Ballot Measures

The League of Women Voters of California is a nonpartisan organization committed to informed and active citizen participation in government. Our election services are carried out by the League of Women Voters California Education Fund (LWVCEF) and exclude all advocacy.

Criteria for Evaluating Ballot Propositions

• Who are the real sponsors and opponents of the measure? Investigate the names of groups with which you are not familiar.

• Does the measure deal with one issue which can easily be decided by a "yes" or "no"? Or is it a complex issue which should be thoroughly examined in the legislative arena?

• Is it written well? Are there conflicts in the measure that may require court resolution or interpretation? Is it "good government" or will it cause more problems than it will resolve?

• If the measure amends the Constitution, consider whether it really belongs in the Constitution. Amending the Constitution is cumbersome and costly and requires a vote of the people. Would a statute accomplish the same purpose?

• Does the measure create its own revenue source? Does it earmark, restrict, or obligate a specific percentage of General Fund revenues? Consider the effect on the overall flexibility of the budget.

• Examine the measure by its merits. During the campaign, be wary of distortion tactics and commercials that rely on image, but tell nothing of substance about the measure.

FAQs on Bonds

See also "An Overview of State Bond Debt".

What is a bond?

A bond is a form of borrowing often used by state and local governments, usually to pay for capital outlay projects that would be too costly to pay for at one time. In effect, investors loan money to the government for a specific project and are repaid with interest over a specified number of years.

Why are bonds on the ballot?

In California, when the state wants to borrow money through a general obligation bond, this action must be approved by a majority of the voters. This ensures investors that the bonds are backed by the full faith and credit of the state.

How do state general obligation bonds get on the ballot?

They are put on the ballot by a two-thirds vote of both houses of the legislature with the signature of the Governor, or through a voter initiative.

How does repayment affect the state budget and my taxes?

The principal and interest on bonds are repaid from the state's General Fund. Money in the fund comes from personal income taxes (47%), sales taxes (35%), corporate income taxes (12%), and several smaller sources (6%).

How are bonds repaid?

Bonds are a debt and repaying them takes precedence over any other expenditure. Currently the state's bond debt is about 4.1% of the General Fund revenues. Payments on the state's General Fund debt will be around $2.6 billion during the 1999-2000 fiscal year.

According to the Legislative Analyst, if all five of the bonds on the March ballot are approved, it will have little effect on the state's 4.1% debt ratio, since General Fund revenue is expected to increase at a faster pace than the new debt resulting from sales of these bonds.

The Initiative Process

The initiative process allows voters to bypass the legislature and propose ballot measures. The two types of initiatives are constitutional amendments and statutes; and like other ballot measures, they require a majority vote to pass. Proponents circulate petitions to collect the required number of voters' signatures to qualify the measure for the ballot.

An initiative constitutional amendment requires more signatures than a statute, but if it is approved by a majority of the voters, this measure becomes part of the state's constitution and is difficult to change: an amendment may be proposed for voter approval by qualifying another initiative or by a two-thirds vote of the members of each house of the Legislature and the Governor's signature.

An initiative statute is easier to qualify because it requires fewer signatures but the Legislature can amend it with a majority vote (unless the statute specifies a two-thirds vote) and submission to the electorate, unless the initiative specifically permits amendment without voter approval.

On Propositions: Evaluation Criteria - About Initiatives - Smart Voter
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Last updated: January 19, 2000
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