Replies

I didn't know that was coming up. I'd like you to ping me on anything pertinent on that, if you don't mind.

I'll try to remember. I'm sure there will be more discussion on it. They are the bond initiatives that will be on the November ballot in California. My information comes from digging in and reading the actual legislation. As usual, the language for the ballot has been mandated by the legislature and has some highly misleading language. Hopefully, some tax groups or journalists will start providing some details long before the election.

As background, in January Schwarzenegger originally proposed $68 Billion in general obligation bonds that, after including federal and private funds, equated to a $222 Billion 10-year plan ($26 Billion in bonds for a total of $86 Billion in the first 5-year phase).

The supposedly "scaled-back" plan is $37 Billion in bonds for a total $116 Billion 5-year plan; it passed the legislature a couple weeks ago. Collectively, the projects include schools, highways, rail, port infrastructure, border infrastructure, and flood control/levees (not to mention the farmworker housing, infill development, and some other atrocious items). At one point, they had included some water projects along the Mexican border (I don't remember where those projects stand right now).

The federal funds are coming from some of these intermodal designations such as "corridors of national significance", or similar titles. Private funds are being pursued for toll-roads, with lots of foreign investors apparently clamoring to the table for licensing rights. They will be offered in a series of initiatives (Props 1A through 1E). Here is a snapshot of the $116 Billion plan ($37 Billion in borrowing):

Prop# Bill#     Description     Gen'l Oblig Bond   Total Inv Amt

1a    SCA 7     Prop 42 chg      n/a                n/a
1b    SB 1266   Transportation  $19.925 Billion    $86.8 Billion
1c    SB 1689   Housing         $ 2.850 Billion    $ 2.9 Billion
1d    AB 127    Schools         $10.416 Billion    $18.0 Billion
1e    AB 140    Flood Control   $ 4.090 Billion    $ 8.1 Billion

Oh, in case I forget to ever mention again, beware of Prop 1A (the "strengthening" of Prop 42 provisions). It actually facilitates some more internal borrowing and/or deferrals of prior borrowing.

Ooops. I just bothered to look at your homepage. I had assumed you were in California so I probably gave you a whole lot more info than you were looking for, lol. Oh well. I'll ping hedgetrimmer to get the bang for the buck! lol.