Section 4 of Article XIII – The argument is that it would be easier to raise money for local infrastructure and necessary maintenance through bonded indebtedness. The funding sources to raise money for Special Taxes are not like statewide bonds issued by the state of California for general funding purposes. The costs and expenses for California general obligation bonds are repaid out of state general funds. The sources of state general funds come from contributions from income taxes, sales taxes and other tax sources. The effect is that all California residents share in the pain of paying the interest and the repayment of principal associated with General Obligation bonds.
The difference between General Obligation bonds and Special Obligation bonds is that only property owners are looked to for payment of interest and principal relating to Special Obligation bonds.
The entire voting public has the right to vote to pass Special Obligation ballot measures. People who do not own real estate have the right to vote to raise the taxes on those who own real estate. Section 4 of Article XIII
Allowing a lower passing voting majority will only lead to higher debt owed. Since people who will not be expected to participate or pay will have no reservations in voting to have someone else pay. We have seen this in election after election.
The California Public Policy Center has done a study of California’s debt and has calculated that currently California has a combined debt of $1.1 trillion. Section 4 of Article XIII
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