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CHILDREN’S HOSPITAL PROJECTS GRANT PROGRAM.
Bond Act. Initiative Statute

THE QUESTION

Should the state borrow $750 million through the sale of general obligation bonds to be repaid from the state’s General Fund for construction, remodeling, furnishing and equipping children’s hospitals?

THE SITUATION

Children’s hospitals provide diagnostic, therapeutic, and rehabilitative services to injured, disabled, and sick infants and children. Many children receiving services in these hospitals are from low-income families and have significant health care needs.

THE PROPOSAL

Proposition 61 authorizes the state to sell $750 million in general obligation bonds for capital improvement projects at children’s hospitals. The measure specifically identifies the five University of California children’s hospitals as eligible recipients, which are Mattel Children’s Hospital at UCLA, University Children’s Hospital at UC Irvine, UC Davis Children’s Hospital, UC San Diego Children’s Hospital, and UC San Francisco Children’s Hospital. Other children’s hospitals in California would also be eligible.

FISCAL EFFECT

If the $750 million in bonds were sold at an interest rate of 5.25 percent and repaid over 30 years, the cost to the state General Fund would be about $1.5 billion to pay off both the principal ($750 million) and the interest ($756 million). The average total payment would be about $50 million per year. Administrative costs would be limited to 1 percent of the bond funds or less.

WHAT A YES OR NO VOTE MEANS

A YES vote means the state could issue $750 million in general obligation bonds for construction, remodeling, furnishing and equipping children’s hospitals.

A NO vote means the state would not be able to issue new general obligation bonds for construction, remodeling, furnishing and equipping children’s hospitals.

SUPPORTERS SAY

• Proposition 61 will help make room in California’s crowded children’s hospitals to treat children with leukemia, cancer, sickle cell, and heart disease who need access to critical care.
• Children’s hospitals will be able to purchase the latest medical technologies and special equipment needed.
• Children’s hospitals will be able to increase bed capacity to ensure that sick and injured children have access to a regional facility with specialized equipment.

OPPONENTS SAY

• California bond voters have already approved billions of dollars in bond sales and have mortgaged the future. Additional borrowing is not responsible at this time of deficits and high debt.

For more information:

Supporters: Charity Bracy, California Children 's Hospital Association, (858) 974-1644, www.savethechildrenshospital.com

Opponents: Gary B. Wesley, Attorney at Law, (408) 882-5070

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