No Free Lunch California Progress Report:
"Bond measures often succeed at the polls, and it’s easy to see why. They require only a simple majority vote; generally – but not always – pay for infrastructure, such as schools and highways; and appear to be “free money” since voters aren’t asked to raise taxes in order to repay the bondholders.
In reality, there’s no free lunch. Debt service (principal plus interest on bonds) becomes a new General Fund obligation paid out of the same limited revenues that also fund services that enhance the quality of life for all Californians – everything from K-12 and higher education to in-home care for low-income seniors and people with disabilities."
"Bond measures often succeed at the polls, and it’s easy to see why. They require only a simple majority vote; generally – but not always – pay for infrastructure, such as schools and highways; and appear to be “free money” since voters aren’t asked to raise taxes in order to repay the bondholders.
In reality, there’s no free lunch. Debt service (principal plus interest on bonds) becomes a new General Fund obligation paid out of the same limited revenues that also fund services that enhance the quality of life for all Californians – everything from K-12 and higher education to in-home care for low-income seniors and people with disabilities."