Proposition 4 is the Children's Hospital Bonds Initiative. It would authorize $1.5 billion dollars in “general obligation” bonds to award grants to children's hospitals for construction and renovation.
A general obligation bondis a lower risk loan because the government can repay the bond with tax revenue.
Under the measure 72 percent of the funding will go to seven private nonprofit children's hospitals. University of California children's hospitals, and other public and private hospitals will receive funds too.
The California Children's Hospital Association raised just over 10 million dollars to support the ballot initiative. Donors included several hospitals that qualify for funding under the measure.
After a 35-year repayment period, the total cost of the bond would amount to $2.9 billion dollars. That’s the original $1.5 billion plus interest. The money will come from the state’s General Fund, which includes revenues from income and sales taxes.
Opponents say Proposition 4 could potentially result in higher property taxes, used to pay back the loan.
This is the third bond measure related to children's hospitals in California. The previous two passed in 2004 and 2008.
So, if you want to authorize state money for supporting construction and renovation of children's hospitals, vote yes on Proposition 4. Othwervise vote no.