“Voters in Four States to Decide on Billions in Bonds This Fall”
This fall, voters in California, Maine, New Mexico, and Rhode Island will be deciding on bond measures ranging from $10 million to $10 billion. California is set to vote on the largest items, including a $10 billion bond for climate resilience and another $10 billion bond for schools. If approved, the state can sell bonds to people and companies, repaying them with interest over time.
Julia Stein, deputy director of the Emmett Institute on Climate Change and the Environment at UCLA, said that while the bond measures are large, they are polling well since they tend to be more popular with voters than tax increases. Bonds allow current costs to be spread out over time, meaning future citizens will shoulder the repayment burden.
Local governments, such as counties and school districts, can also issue bonds to fund improvements like new buses, gymnasiums, or computers. According to Tammy Patrick, chief program officer for the National Association of Election Officials, bonds are a popular tool for politicians because they provide reliable funding while leaving key decisions in the hands of voters.
Bonds tend to be safe investments as they are backed by the state’s general taxing authority, making them attractive to large financial institutions. However, like any loan, bonds come with interest costs, and excessive borrowing can put governments at risk if future tax revenues fall. This could lead to cuts in services or increased taxes to cover the debt.
Over the past 15 years, voters have approved the majority of bond measures, with only nine out of 128 being rejected.
