California voters surprised many this week by passing several expensive propositions that will further strain an already strapped state budget. As was established in the comments section of a story that ran yesterday, I am terrible at math. But I have noticed some numbers – stemming from the passage of several propositions on Tuesday – that are worth sharing.
Definite Costs
Prop 1A (52.2% voter approval) – The state will buy $9.95 billion in bonds to pay for the construction of the high-speed train system. With principle and interest, the state will pay $19.4 billion out of the general fund. The passage of Prop 1A added an additional $647 million to the state budget, every year for 30 years.
Prop 3 (54.9% voter approval) – The state will buy $980 million in bonds to be given to California hospitals, with 80% of that total guaranteed to children’s hospitals. With principle and interest, the state will pay $2 billion out of the general fund. The passage of Prop 3 added an additional $64 million to the state budget, every year for 30 years.
Prop 12 (63.5% voter approval) – The state will buy $900 million in bonds to help veterans pay to rent or purchase housing. With principle and interest, the state will pay $1.8 billion out of the general fund. The passage of Prop 3 added an additional $59 million to the state budget, every year for 30 years.
The passage of these three propositions adds $770 million to the state budget, every year for the next 30 years. The state will eventually pay back $23.2 billion for $11.83 billion in bonds.
Estimated Costs
Prop 2 (63.2% voter approval) – Experts expect to lose state and local tax revenues from farm business because of the passage of Prop 2, that could add up to several million dollars annually. It will also cost the state several million to enforce Prop 2, but experts predict these costs may be offset by fines paid to the state.
Prop 9 (53.5% voter approval) – Experts predict that the passage of Proposition 9 could result in losses of hundreds of millions of dollars annually, and could produce savings in the low tens of millions of dollars annually.
Local Taxpayer Costs
Measure K (71.3% voter approval) – Long Beach Unified School District will buy $1.2 billion in bonds to pay for the improvements to local campuses. With principle and interest, taxpayers will eventually pay $2.1 billion over 25 years. The state could also add up to $286 million of its own money. Property owners will be taxed $5 monthly for every $100,000 of their estimated property value. Experts predict that property owners will pay an average of $11 per month, and $132 per year.
Measure R (67.4% voter approval) – The County of Los Angeles will raise its sales tax by 0.5% on purchases made, and funds will go towards transportation projects aimed at alleviating congestion. The County expects to raise $40 billion over the next 30 years. Experts predict that the average person will pay an additional $25 per year.
Long Beach residents will pay a predicted additional $157 per year with the passage of these two measures.
By Ryan ZumMallen, Managing Editor