Proposition 57 was a California ballot proposition

California ballot proposition

In California, a ballot proposition is a proposed law that is submitted to the electorate for approval in a direct vote . It may take the form of a constitutional amendment or an ordinary statute. A ballot proposition may be proposed by the State Legislature or by a petition signed by members of...

 on the March 2, 2004 ballot. It was passed with 4,056,313 (63.4%) votes in favor and 2,348,910 (36.6%) against. The proposition authorized the state to sell $15 billion in long-term bonds

Bond (finance)

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

 to pay off accumulated deficits. Proposition 57 went into effect only because Proposition 58

California Proposition 58 (2004)

Proposition 58 was a California ballot proposition on the March 2, 2004 ballot. It passed with 4,535,084 votes in favor and 1,841,138 against. It was officially called the California Balanced Budget Act...

 (the California Balanced Budget Act) also passed.

Propositions 57 and 58 were the centerpiece of Governor

Governor of California

The Governor of California is the chief executive of the California state government, whose responsibilities include making annual State of the State addresses to the California State Legislature, submitting the budget, and ensuring that state laws are enforced...

 Arnold Schwarzenegger

Arnold Schwarzenegger

Arnold Alois Schwarzenegger is an Austrian-American former professional bodybuilder, actor, businessman, investor, and politician. Schwarzenegger served as the 38th Governor of California from 2003 until 2011....

's plan to resolve California's budget problems. Schwarzenegger campaigned heavily for the passage of Propositions 57 and 58. California State Senator

California State Senate

The California State Senate is the upper house of the California State Legislature. There are 40 state senators. The state legislature meets in the California State Capitol in Sacramento. The Lieutenant Governor is the ex officio President of the Senate and may break a tied vote...

 Tom McClintock

Tom McClintock

Thomas Miller McClintock II is the U.S. Representative for , serving since 2009. He is a member of the Republican Party. He is a former Assemblyman and state Senator...

, Schwarzenegger's fellow Republican

Republican Party (United States)

The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...

 and rival in the 2003 gubernatorial recall, was one of the chief opponents of Proposition 57.

Official summary

• A one time Economic Recovery Bond of up to fifteen billion dollars ($15,000,000,000) to pay off the state's accumulated General Fund deficit as of June 30, 2004.
• The Economic Recovery Bond will be issued only if the California Balanced Budget Act is also approved by the voters.
• The bonds will be secured by existing tax revenues and by other revenues that can be deposited in a special fund.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

• One-time increase, compared to a previously authorized bond, of up to $4 billion to reduce the state's budget shortfall.
• Annual debt-service savings over the next few years.
• Above effects offset in subsequent years by higher annual debt-service costs due to this bond's larger size and the longer time period for its repayment.

External links

• Voter Information Guide with text of Proposition 57