CalProps Analysis: Prop 3
Every few years or so there a new bond placed on the ballot to help finance the construction and financing of childrens hospitals throughout the state with a new bond. This year happes to be one of those years, and Californians are being asked to borrow $980 million to meet those ends.
While there is a lot of discussion about bond measures this year -- it happens to be a bad time for the issuance of debt in the mind of voters given the turmoil in financial markets, the condition of the economy, melting of the foreclosure market and general distate for the direction of government -- if there was ever a bond that would pass -- it would be one for ailing children and the hospitals that treat them.
As a recent San Francisco Chronicle article pointed out, Prop. 3 is nearly identical to Prop. 61, a $750 million bond measure for children's hospitals approved by voters in 2004 by 58 percent of the vote.
The hospitals say they need the additional funds because of soaring construction costs and a squeeze on Medi-Cal reimbursements, leaving them little money to apply toward infrastructure.
They say that there is also increasing demand for medical care as the number of children in the state rises -- over the next two decades, the number of children in California will jump by 35 percent, according to the state Department of Finance.
Theres no paid support for this measure -- at least not much to speak of anyway. While we could all make a commercial that would tug at the heartstrings of Californians and compel them to tug at their wallets for the sick kids on the screen - don't expect that to be the case on Proposition 3. This is one of those measures that will pass with out ads and tons of money thrown at it. If it doesn't, the underlying market conditions and dynamics will be too strong to change the outcome anyway. The campaigns real difficulties were finding the money to get the measure qualified. Once they passed that hurdle, theyre hoping the passage of Prop 61 by a nearly 60-40 ratio means they'll be getting a cash infusion to the tune of $980 million come January 1, 2009.
While there is a lot of discussion about bond measures this year -- it happens to be a bad time for the issuance of debt in the mind of voters given the turmoil in financial markets, the condition of the economy, melting of the foreclosure market and general distate for the direction of government -- if there was ever a bond that would pass -- it would be one for ailing children and the hospitals that treat them.
As a recent San Francisco Chronicle article pointed out, Prop. 3 is nearly identical to Prop. 61, a $750 million bond measure for children's hospitals approved by voters in 2004 by 58 percent of the vote.
The hospitals say they need the additional funds because of soaring construction costs and a squeeze on Medi-Cal reimbursements, leaving them little money to apply toward infrastructure.
They say that there is also increasing demand for medical care as the number of children in the state rises -- over the next two decades, the number of children in California will jump by 35 percent, according to the state Department of Finance.
Theres no paid support for this measure -- at least not much to speak of anyway. While we could all make a commercial that would tug at the heartstrings of Californians and compel them to tug at their wallets for the sick kids on the screen - don't expect that to be the case on Proposition 3. This is one of those measures that will pass with out ads and tons of money thrown at it. If it doesn't, the underlying market conditions and dynamics will be too strong to change the outcome anyway. The campaigns real difficulties were finding the money to get the measure qualified. Once they passed that hurdle, theyre hoping the passage of Prop 61 by a nearly 60-40 ratio means they'll be getting a cash infusion to the tune of $980 million come January 1, 2009.
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