Proposition Number and Title

Description

Fiscal Impact

Proposition 40: California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act. Bond Measure

This measure allows the state to sell $2.6 billion of general obligation bonds to conserve natural resources (land, air, and water), to acquire and improve state and local parks, and to preserve historical and cultural resources.

Bond Costs. If the bonds were sold at an interest rate of 5 percent (the current rate for this type of bond), the cost would be about $4.3 billion to pay off both the principal ($2.6 billion) and interest ($1.7 billion). The average payment would be about $172 million per year.

Operational Costs. State and local governments that buy or improve property with these bond funds will incur additional costs to operate or manage these properties, which could be offset partly by revenues from those properties, such as state park entrance fees.

Proposition 41: Voting Modernization Bond Act of 2002

This measure allows the state to sell $200 million in general obligation bonds for updated voting systems.

State Bond Costs. If the bonds are sold at an interest rate of 5 percent (the current rate for this type of bond), the cost would be about $255 million to pay off both the principal ($200 million) and the interest ($55 million), about $26 million per year.

Cost to Counties. The measure would result in additional costs of tens of millions to counties that receive bond funds. First, the counties would incur one-time matching fund costs of about $67 million statewide. Second, counties would also incur additional ongoing costs to operate, maintain, and store the new voting equipment, and to train staff and voters on how to use the new machines.

Proposition 42: Transportation Funding: Sales and Use Tax Revenues

This measure places in the State Constitution those provisions of current law that require that, from 2003-04 through 2007-08, gasoline sales tax revenues be used for specified state and local transportation purposes.

State Costs. The measure places in the State Constitution those provisions of current law that require the use of state gasoline sales tax revenues for state and local transportation purposes from 2003-04 through 2007-08. Consequently, for that period, the measure would have no additional fiscal impact. Beginning in 2008-09, however, the measure could "tie up" state gasoline sales tax revenues projected to be about $1.4 billion in 2008-09, increasing annually thereafter.

Proposition 43: Right to Have Vote Counted

This measure amends the Constitution to explicitly state that every vote cast in accordance with state law shall be counted, thus affirming in the Constitution the right of the voter to have his/her vote counted.

This measure would not result in additional costs to the state or local governments.

Proposition 44: Board of Chiropractic Examiners. Legislative Initiative Amendment

This measure requires the Board of Chiropractic Examiners to revoke for 10 years the license of a chiropractor who is convicted for a second time, or is convicted of multiple counts in a single case, of various specified offenses, including insurance fraud.

The Board of Chiropractic Examiners currently investigates all cases in which a criminal charge has been filed alleging insurance fraud by a licensed chiropractor, where the district attorney does not object. As a result, any additional costs to implement this measure would be negligible.

Proposition 45: Term Limits—Local Legislative Option. Initiative Statute

This measure allows local voters to petition the Secretary of State to permit their incumbent Senator or Assembly Member who is termed-out to run for reelection to that same office at the next election or elections (in the case of the Assembly), thereby allowing the legislator to serve up to an additional four years in office.

Counties would incur unknown costs for verifying the signatures on the petitions. The magnitude of these costs is unknown, but potentially up to several hundreds of thousands of dollars every other year on a statewide basis. The state would incur little or no costs for tracking the eligibility of candidates for reelection.