OFFICIAL TITLE AND SUMMARY
Prepared by the Attorney General
THE ECONOMIC RECOVERY BOND ACT.
- 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.
Final Votes Cast by the Legislature on ABX5 9 (Proposition 57)