Proposition 55 was a California ballot proposition

California ballot proposition

In California, a ballot proposition is a proposed law that is submitted to the electorate for approval in a direct vote . It may take the form of a constitutional amendment or an ordinary statute. A ballot proposition may be proposed by the State Legislature or by a petition signed by members of...

 on the March 2, 2004 ballot. It passed with 3,239,706 (50.9%) votes in favor and 3,130,921 (49.1%) against. The official title was Kindergarten-University Public Education Facilities Bond Act of 2004. Its main provisions authorized the sale of $12.3 billion in bonds

Bond (finance)

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

 intended to relieve overcrowding and to repair public education

Public education

State schools, also known in the United States and Canada as public schools,In much of the Commonwealth, including Australia, New Zealand, South Africa, and the United Kingdom, the terms 'public education', 'public school' and 'independent school' are used for private schools, that is, schools...

 facilities from public elementary school

Elementary school

An elementary school or primary school is an institution where children receive the first stage of compulsory education known as elementary or primary education. Elementary school is the preferred term in some countries, particularly those in North America, where the terms grade school and grammar...

s through public universities

Public university

A public university is a university that is predominantly funded by public means through a national or subnational government, as opposed to private universities. A national university may or may not be considered a public university, depending on regions...

.

Official summary

• This act provides for a bond issue of twelve billion three hundred million dollars ($12,300,000,000) to fund necessary education facilities to relieve overcrowding and to repair older schools.
• Funds will be targeted to areas of greatest need and must be spent according to strict accountability measures.
• Funds will also be used to upgrade and build new classrooms in the California Community Colleges
  California Community Colleges system
  The California Community Colleges System consists of 112 community colleges in 72 community college districts in the U.S. state of California...
  
  , the California State University
  California State University
  The California State University is a public university system in the state of California. It is one of three public higher education systems in the state, the other two being the University of California system and the California Community College system. It is incorporated as The Trustees of the...
  
  , and the University of California
  University of California
  The University of California is a public university system in the U.S. state of California. Under the California Master Plan for Higher Education, the University of California is a part of the state's three-tier public higher education system, which also includes the California State University...
  
  , to provide adequate higher education facilities to accommodate growing student enrollment.
• Appropriates money from General Fund to pay off bonds.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

• State costs of about $24.7 billion to pay off both the principal ($12.3 billion) and interest ($12.4 billion) costs on the bonds. Payments of about $823 million per year.

External links

• Voter Information Guide with text of Proposition 55