By Jack Humphreville | While the State of California is rolling in the dough with an $8 billion surplus as a result of increases in the State Budget to $200 billion, the spendthrift politicians in Sacramento are asking us to approve a $4.1 billion ballot measure that will help the State “protect our water, parks, and natural resources” from the impact of “severe droughts, wildfires, and climate change.”
Their efforts are backed by the usual suspects who love to wine and dine at our expense: the political establishment, the business community, the public-sector unions, the construction industry, the trade unions, and the environmentalists. They are also spending a fortune to “educate” us on the merits of this pork laden bond measure.
Unfortunately, the cost of this bond measure will double to $8 billion when you factor in the interest and underwriting expenses we will pay to Wall Street investors, traders, and investment bankers. As a result, California taxpayers will be spending between $250 and $300 million a year for the next thirty (30) years.
A more prudent alternative is to develop a plan to fund these projects over an eight-year period. This is not that much longer than it would take to spend the proceeds from the bond offerings. This pay-as-you-go plan would result in payments of $500 million a year, representing a mere 0.25% of the State’s $200 billion budget. This plan eliminates the payment of $4 billion to Wall Street investors, a substantial savings that may be used for other pressing needs such as the repair of our highways, affordable housing, housing for the homeless, and funding of the State’s pension plans.
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