Argument Against California Proposition 51 - $9B Bond Issue by Mark Hinkle

According to the California Constitution, the state government is responsible for K–14 education.

This measure was placed on the ballot by initiative, unlike the previous 42 education-related bond measures placed on the ballot by the California state legislature.  Proposition 51 is opposed by Democratic Governor Jerry Brown.

And 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 Proposition 51.

And 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.

This is crony capitalism, pure and simple.

When you buy a house, “truth in lending” laws require bankers to inform you of the real lifetime cost of a mortgage.

Shouldn’t 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?

In fact the California Legislative Analyst estimates the total cost at $17,600,000,000.

So clearly, the 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.

Using that analogy 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 without knowing the costs involved.

But, that’s exactly what the proponents of Proposition 51 are asking us to do.

If 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.

And 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 interest costs.

This measure funds unknown projects, at unknown locations, with unknown costs.

Why would anyone support this insanity?

What is known is that the costs will be borne by us, the taxpayers, and the vast majority of the funds spent will go to crony-capitalistic special interests.

Please vote NO on Proposition 51.

For more information:

Mark Hinkle, is President of: Silicon Valley Taxpayers Association, and a resident of Morgan Hill.


Media Endorsements:

1. San Jose Mercury News

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