Should statewide voter approval be required before any revenue bonds can be issued or sold by the state for projects where the bond amount exceeds $2 billion?

The state funds its operations and infrastructure by using annual tax revenues (“pay-as-you-go”), and by borrowing money through selling bonds to investors who, over time, are paid back with interest.

There are two main types of bonds: general obligation bonds and revenue bonds. The state repays its general obligation bonds out of the state General Fund. Revenue bonds are typically repaid using the revenue received from fees and other charges paid by the users of the projects (such as bridge tolls, rent, and utility rates). General obligation bonds require statewide voter approval before the state can issue them to pay for a project; revenue bonds, however, do not require statewide voter approval under existing state law.

Statewide voter approval would be required before revenue bonds could be issued or sold by the state for any projects costing over $2 billion. This law would apply to:

• all projects financed, owned, operated or managed by the state; and
• all projects financed, owned, operated, or managed by joint agencies formed between the state and local city or county governments, another state, or a federal government agency.

Dividing large projects into separate smaller projects in order to avoid the requirement of statewide voter approval would be prohibited.     

Unknown. Financial impact on state and local governments, both short-term and over time, would depend on factors such as: which projects are affected, the outcome of a statewide vote, and whether alternative projects or activities are implemented instead that could result in higher or lower costs compared to the original project.

State revenue bonds totaling more than $2 billion for a project that is funded, owned, or managed by the state would require statewide voter approval.

State revenue bonds could continue to be used without voter approval.

Proposition 53 will:

• Ensure that voters directly choose whether or not the state can implement extremely large, expensive projects, such as the bullet train and the proposed tunnels under the Delta.  
• Close the loophole in state law that requires voter approval for general obligation bonds but not billion-dollar revenue bonds.  
• Protect California’s long-term fiscal health by discouraging spending that adds to the state’s debt load.     
• Mandate transparency about the true costs of projects.

Proposition 53 will:

• Take away local control by requiring a statewide vote for many local projects, even when they are funded by local users and ratepayers.    
• Prevent or delay repair and maintenance of the state’s water systems – the most pressing infrastructure issue the state currently faces.    
• Prevent or delay repair and maintenance of infrastructure projects and systems after emergencies or natural disasters.           
• Jeopardize California’s long-term economic health and safety due to deferring necessary infrastructure work.

Yes on 53 – Stop Blank Checks

Major Financial Contributions in support of Prop 53 as of September 15, 2016, include: 

• Dean Cortopassi ($3,067,869)
• Joan Cortopassi ($1,500,000)

No on Prop 53 – Californians to Protect Local Control

Major Financial Contributions in opposition to Prop 53 as of September 15, 2016, include:

• California Construction Industry Labor Management Cooperative Trust ($350,000)
• State Building & Construction Trades Council of California ($350,000)
• International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers ($125,000)
• International Union of Operating Engineers ($125,000)

​Financial contributions to ballot measures change frequently; for up-to-date campaign contribution information, please check Cal Access.