Hello.
The California Treasurer will be responsible for issuing/servicing the
bonds under Proposition 55.
The text of Proposition 55 makes it clear that the bonds are General
Obligation bonds to be sold by the State Treasurer:
"...the Treasurer shall sell the bonds..."
"100830. (a) The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section 16720)
of Part 3 of Division 4 of Title 2 of the Government Code), and all of
the provisions of that law, except Section 16727 of the Government
Code, apply to the bonds and to this chapter and are hereby
incorporated into this chapter as though set forth in full within this
chapter."
source: Voter Guide - Proposition 55
http://www.voterguide.ss.ca.gov/propositions/prop55-text.html
The General Obligation Bond law referred to above may be read at the
California Legal Information web site:
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=gov&group=16001-17000&file=16720-16727
The State Treasurer's Office (the agency responsible for the bonds)
has a web site at:
http://www.treasurer.ca.gov
It's worth noting that although the Treasurer does issue the bonds,
bonds such as General Obligation Bonds are sold to private
underwriters who then re-sell the bonds to the public.
http://www.treasurer.ca.gov/Bonds/os.htm
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As for the cost of the bond issuance, it is estimated to be about
$24.7 billion (i.e., an average of $823 million per year for 30 years)
"FISCAL EFFECT
The cost of these bonds would depend on their interest rates and the
time period over which they are repaid. If the $12.3 billion in bonds
authorized by this proposition is sold at an interest rate of 5.25
percent (the current rate for this type of bond) and repaid over 30
years, the cost over the period would be about $24.7 billion to pay
off both the principal ($12.3 billion) and interest ($12.4 billion).
The average payment for principal and interest would be about $823
million per year. "
source: California Voter Guide
http://www.voterguide.ss.ca.gov/propositions/prop55-analysis.html
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search strategy:
"proposition 55" text
"proposition 55" cost, billion
I hope this helps. If anything is unclear, please let me know via the
"request clarification" feature. Thanks. |
