Politichaos

Resolving the Ruckus

2018 Primary

California 2016

State Assembly (76th District)

Propositions

Proposition 51

vote.jpg

School Bonds. Funding for K-12 School and Community College Facilities.

initiative statute

*PASSED*

Official Summary

Authorizes $9 billion in general obligation bonds: $3 billion for new construction, $3 billion for modernization of of K-12 public school facilities, $500 million for charter schools,$500 million for vocational education facilities, $2 billion for Community Colleges facilities.

Fiscal Impact: State costs of about $17.6 billion to pay off both the principal ($9 billion) and interest ($8.6 billion) on the bonds. Payments of about $500 million per year for 35 years.

Notes

  • project monies taken from new 2016 State Schools Facilities Fund and 2016 California Community College Capital Outlay Bond Fund
  • appropriates money from the general fund to pay off bonds
  • items using Community College money must have average useful life of 10 years, seismic retrofitting given priority
  • last state facility bond in 2006; today the state has virtually no remaining funding from previous school/community college bonds
  • new construction: state funding 50%, local funding 50%
  • modernization projects: state funding 60%, local funding 40%
  • modernization projects for charter/tech ed schools: state funding 50%, local funding 50%

Proposition 52

vote.jpg

Medi-Cal Hospital Fee Program.

initiative constitutional amendment & statute

*PASSED*

Official Summary

Extends indefinitely an existing statute that imposes fees on hospitals to fund Medi-Cal health care services, care for uninsured patients, and children’s health coverage.

Fiscal Impact: Uncertain fiscal effect, ranging from relatively little impact to annual state General Fund savings of around $1 billion and increased funding for public hospitals in the low hundreds of millions of dollars annually.

Notes

  • extends current statute indefinitely - Hospital Quality Assurance Fees imposed on hospitals to obtain federal matching funds (since 2009, set to expire 2018)
    • 2015-2016 fees = $4.6 B paid by hospitals (used as matching funds for federal funding), $3.7 B paid to hospitals by Medi-Cal, $4.4 B paid to hospitals by federal govt; State General Fund savings $850 M
  • Federal government will need to approve extension for hospitals to continue to receive federal funding
    • if federal extension does not happen, this fee goes away
  • fee could end only by 2/3 vote of ballot proposition measure, not by legislature or simple majority
  • Constitutional Amendment portion: fees do not count as revenue toward Prop 98 funding requirement (school funding based on general fund monies brought in)