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League of Women Voters of California Education Fund Evaluating Ballot Measures

The League of Women Voters of California is a nonpartisan organization committed to informed and active citizen participation in government. Our election services are carried out by the League of Women Voters California Education Fund (LWVCEF) and exclude all advocacy.

Criteria for Evaluating Ballot Propositions

• Who are the real sponsors and opponents of the measure? Investigate the names of groups with which you are not familiar.

• Does the measure deal with one issue which can easily be decided by a "yes" or "no"? Or is it a complex issue which should be thoroughly examined in the legislative arena?

• Is it written well? Are there conflicts in the measure that may require court resolution or interpretation? Is it "good government" or will it cause more problems than it will resolve?

• If the measure amends the Constitution, consider whether it really belongs in the Constitution. Amending the Constitution is cumbersome and costly and requires a vote of the people. Would a statute accomplish the same purpose?

• Does the measure create its own revenue source? Does it earmark, restrict, or obligate a specific percentage of General Fund revenues? Consider the effect on the overall flexibility of the budget.

• Examine the measure by its merits. During the campaign, be wary of distortion tactics and commercials that rely on image, but tell nothing of substance about the measure.

FAQs on Bonds

What is a bond?

A bond is a form of borrowing often used by state and local governments, usually to pay for capital outlay projects that would be too costly to pay for at one time. In effect, investors loan money to the government for a specific project and are repaid with interest over a specified number of years.

How does repayment affect the state budget and my taxes?

The principle and interest payments on about three-fourths of general obligation bonds are made from the state's General Fund, which comes primarily from state income taxes and sales taxes. The remaining general obligation bonds (such as the Veterans' Bonds on this ballot) are self-supporting and, therefore, do not require General Fund repayment and support.

How are bonds repaid?

According to the Legislative Analyst, the Veterans' Bonds of Proposition 32 are a self-supporting source of funds that will not depend on the General Fund for repayment. Therefore, if the measure passes, this General Election outcome will not affect the state's debt ratio. Currently the state's bond debt is about 3.9% of the General Fund revenues. Payments on the state's General Fund debt will be around $2.9 billion during the 2000-01 fiscal year.

Why are bonds on the ballot?

In California, when the state wants to borrow money through a general obligation bond, this action must be approved by a majority of the voters. This ensures investors that the bonds are backed by the full faith and credit of the state.

How do state general obligation bonds get on the ballot?

They are put on the ballot by a two-thirds vote of both houses of the legislature with the signature of the Governor, or through a voter initiative.

See also "An Overview of State Bond Debt".

The Initiative Process

The initiative process allows voters to bypass the legislature and propose ballot measures. The two types of initiatives are constitutional amendments and statutes; and like other ballot measures, they require a majority vote to pass. Proponents circulate petitions to collect the required number of voters' signatures to qualify the measure for the ballot.

An initiative constitutional amendment requires more signatures than a statute, but if it is approved by a majority of the voters, this measure becomes part of the state's constitution and is difficult to change: an amendment may be proposed for voter approval by qualifying another initiative or by a two-thirds vote of the members of each house of the Legislature and the Governor's signature.

An initiative statute is easier to qualify because it requires fewer signatures but the Legislature can amend it with a majority vote and submission to the electorate, unless the initiative specifically permits amendment without voter approval.

On Propositions: Evaluation Criteria - About Initiatives - Smart Voter
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Last updated: October 9, 2000
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