California Proposition 51 - $9B Bond Issue by Mark Hinkle
to the California Constitution, the state government is responsible for K–14
measure was placed on the ballot by initiative, unlike the previous 42 education-related bond
on the ballot by the California state legislature. Proposition 51 is opposed by Democratic
Governor Jerry Brown.
since the state government did not put
this measure on the ballot, perhaps we should “follow the money” to see what special interests are behind
what do we find? Answer: construction
companies (who will get the lion’s share of the bond money), second only to the
bondholders, and of course, unions.
is crony capitalism, pure and simple.
you buy a house, “truth
in lending” laws
require bankers to inform you of the real lifetime cost of a mortgage.
bond measures, which are essentially like a mortgage because they have to be
paid back with interest—…billions
and billions of interest, —be required to disclose the true cost?
fact the California Legislative
Analyst estimates the
total cost at
title is dramatically misleading, since the real cost of bond is nearly double
the $9,000,000,000 cost claimed in the proposition’s title.
of a mortgage: would you take out a mortgage with
a bank, without
knowing the interest cost?
Clearly, no. It would be nuts to sign a mortgage agreement
the costs involved.
that’s exactly what the proponents of Proposition 51 are asking us to do.
Proposition 51 beats us, the bonds will be sold over a number months and years, and since no one
knows what the interest rate of those bonds will be when they are sold, the
interest cost is also unknown as well.
unlike local school bond measures, we, the voters, have no idea where this money will be sent, or on what projects
it will be spent, —only that it will be spent and then paid back with billions and billions of
measure funds unknown projects, at unknown locations, with unknown costs.
would anyone support this insanity?
is known is that the costs will be
borne by us, the
the vast majority of the funds spent will go to crony-capitalistic
vote NO on Proposition 51.
For more information: www.SVTaxpayers.org/2016-proposition-51
Mark Hinkle, is President of:
Silicon Valley Taxpayers Association, and a resident of Morgan Hill.
1. San Jose Mercury News