BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Recommended Position on Proposition 53 - Voter Approval Requirement for Revenue Bonds above $2 Billion.
End
RECOMMENDATION:
Recommendation
Adopt a position of "Oppose" on Proposition 53 - Voter Approval Requirement for Revenue Bonds above $2 Billion.
Body
SUMMARY:
Proposition 53 - Voter Approval Requirement for Revenue Bonds above $2 Billion
Recommended Position: Oppose
Proposition 53 will appear on the Nov. 8, 2016 ballot. The measure, if approved by voters, would amend the California Constitution to require statewide voter approval of infrastructure projects financed, owned, operated, or managed by the State. The measure would prohibit dividing projects into multiple separate projects to avoid statewide voter approval requirement.
While bonds that are repaid through the state general revenues appear on California ballots for voter approval, bonds repaid from specific funds or through fees, taxes, rates, etc., are not required to be voter-approved. If Prop 53 is approved, it will require (1) full disclosure of the total cost of any state revenue bond project greater than $2 billion, and (2) statewide voter approval before any revenue bonds are issued or sold by the state for certain projects that use over $2 billion in state revenue bonds.
The measure would apply to a broad range of projects including: water storage facilities, desalination plants, water treatments facilities, roads and highways, hospitals and healthcare facilities, UC and CSU facilities, ports, and bridges.
Importance to the District
The Board has approved Legislative Guiding Principles which provide that the District support legislative efforts to both (1) support innovative funding proposals which leverage government dollars, and (2) support state and federal funding for key infrastructure efforts, including funding for local projects and a Bay-Delta solution.
Although the main justification offered for Proposition 53 is the need of ...
Click here for full text