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Ballot measures bring the voter directly into the law-making and financing process. California law is contained in the state constitution and various state codes.

Amendments to the constitution, general obligation bond acts, and proposals made through the initiative or referendum process are always brought to the people for a vote. Proposed constitutional amendments and bond measures put on the ballot by the Legislature must receive a two-thirds vote in each house. At the polls, however, only a simple majority of votes is needed to adopt any statewide ballot measure.

The state bond program is the mechanism used by the state to borrow large sums of money.

There are three basic ways to finance the state's capital infrastructure needs:

• Pay "up front" through direct appropriations. This is the least costly method of funding infrastructure needs. An example: gasoline tax revenues and fees support annual spending.



• Lease or lease-purchase facilities. This is often used to meet office space needs. However, reliable leasing markets do not exist to fulfill the state's infrastructure needs such as a private market for large water facilities.



• Issue bonds. When the state funds its needs by using bonds, it is making an additional long-term commitment of General Fund monies.