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California Proposition 57 (2004)Proposition 57 was a proposition in the state of California on the March 2, 2004 ballot. It passed with 4,056,313 (63.4%) votes in favor and 2,348,910 (36.6%) against. It was officially called The Economic Recovery Bond Act. The proposition authorized the state to sell $15,000,000,000 in long-term bonds to pay off accumulated deficits. Proposition 57 would only have gone into effect if Proposition 58 (the California Balanced Budget Act) also passed, which it ultimately did. Propositions 57 and 58 were the centerpiece of Gov. Arnold Schwarzenegger's plan to resolve California's budget problems. Schwarzenegger campaigned heavily for the propositions' passage. Schwarzenegger's rival in the 2003 California recall, state senator Tom McClintock, was one of the chief opponents to Prop. 57. See also: List of California ballot propositions 2000-present Official summary - A one time Economic Recovery Bond of up to fifteen billion dollars ($15,000,000,000) to pay off the state's accumulated General Fund deficit as of June 30, 2004.
- The Economic Recovery Bond will only be issued if the California Balanced Budget Act is also approved by the voters.
- The bonds will be secured by existing tax revenues and by other revenues that could be deposited in a special fund.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: - One-time increase, compared to a previously authorized bond, of up to $4 billion to reduce the state's budget shortfall.
- Annual debt-service savings over the next few years.
- Above effects offset in subsequent years by higher annual debt-service costs due to this bond's larger size and the longer time period for its repayment.
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