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# These four propositions appear on today’s ballot
- URL: https://www.smdp.com/these-four-propositions-appear-on-todays-ballot/
- Published: 2004-03-02T16:00:00.000Z
- Updated: 2026-10-23T03:53:28.000Z
- Author: Guest Author
- Tags: Government & Politics, Santa Monica, #archive-import

PROPOSITION 55: Should the state sell $12.3 billion in general obligation bonds for construction and renovation of K-12 school facilities and higher education facilities? ■Summary: The bond issue will provide funding for necessary education facilities to relieve overcrowding and to repair older schools. Funds will be targeted to areas of the greatest need and must be spent according to strict accountability measures. Funds also will be used to upgrade and build new classrooms in the California Community Colleges, the California State University, and the University of California in an effort to provide adequate higher education facilities to accommodate the growing student enrollment. The bonds may be used only for eligible projects. ■Fiscal Impact: State costs of about $24.7 billion to pay off both the principal ($12.3 billion) and interest ($12.4 billion) costs on the bonds. Payments would be about $823 million per year.

PROPOSITION 56: Should the state constitution and certain statutes be amended to allow the state legislature to pass the state budget, and budget-related tax and appropriation bills with a 55 percent vote, and to make other changes to the budget process? ■Summary: The state budget and tax increase measures would continue to require a two-thirds vote for passage. The budget process would remain the same. It permits the Legislature to enact budget and budget-related tax and appropriation bills with 55 percent vote rather than two-thirds vote currently required. It requires that the Legislature and the governor permanently lose salary and expenses for each day the budget is late. It requires the Legislature to stay in session until the budget is passed. It requires a budget summary in the state ballot pamphlet and link to the Web site with legislators’ voting records on budget and related taxes. It requires 25 percent of certain state revenue increases to be deposited in a reserve fund, which cannot be used to increase spending. ■Fiscal impact: The measure would have varying state fiscal impacts from lowering the legislative vote requirement for budget-related spending and tax increases — including changes in spending and potentially significant increases in state tax revenues in some years. Fiscal impacts would depend primarily on the composition and actions of future Legislatures.

PROPOSITION 57: Should the state of California borrow $15 billion through the sale of bonds to provide financing for California’s budget deficit? ■ Summary: A one-time “California Economic Recovery Bond” of up to $15 billion to pay off the state’s accumulated general fund deficit as of June 30\. The economic recovery bond will only be issued if the “California Balanced Budget Act” (Proposition 58) is also approved by voters. The bonds will be secured by existing tax revenues and by other revenues that could be deposited in a special fund. ■Fiscal impact: It’s a one-time increase, compared to a previously authorized bond, of up to $4 billion to reduce the state’s budget shortfall. It would have annual debt-service savings over the next few years. The effects would be offset in subsequent years by higher annual debt-service costs due to the bond’s larg-er size and the longer time period for its repayment.

PROPOSITION 58: Should the state constitution be amended to require that the state adopt a balanced budget and provide for mid-year adjustments if the budget falls out of balance? Should the constitution also include state budget reserve requirements and limits on future borrowing to finance budget deficits? ■Summary: It requires enactment of a balanced budget where general fund expenditures do not exceed estimated general fund revenues. It would allow the governor to proclaim a fiscal emergency in specified circumstances and submit proposed legislation to address the fiscal emergency. It requires the Legislature to stop other action and act on legislation proposed to address the emergency. It establishes a budget reserve and provides that the California Economic Recovery Bond Act (Proposition 57) is for a single object or work. It also prohibits any future deficit bonds. ■Fiscal impact: Net state fiscal effects are unknown, but will vary year by year and depend in part on actions of future Legislatures. Reserve provisions might smooth state spending, with reductions during economic expansions and increases during downturns. Balanced budget and debt limitation provisions could result in more immediate actions to correct budgetary shortfalls.

*Originally published in the Santa Monica Daily Press print edition on March 2, 2004.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/030204.pdf?ref=smdp.com)