Vote NO on Proposition 71

Prop 71 adds $6 billion to the already massive California deficit

The state of California is in the midst of a huge budget deficit due to overspending at the hands of a reckless legislature and permissive governor (recalled by the California electorate in 2003). Although the California economy is beginning to recover, the deficit is in the tens of billions of dollars. We don't need to add an additional 6 billion dollars (3 billion for bonds1 and 3 billion for interest2) to fund questionable research and special interest groups.


References

  1. ARTICLE 2. CALIFORNIA STEM CELL RESEARCH AND CURES BOND ACT OF 2004
    125282.05. Bonds in the total amount of three billion dollars ($3,000,000,000), not including the amount of any refunding bonds issued in accordance with Section 125282.14, or as much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this article and to be used and sold for carrying out the purposes of Section 125282.03 and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and shall constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both the principal of, and interest on, the bonds as the principal and interest become due and payable. (Source: The California Stem Cell Research and Cures Act)
  2. Proposition 71
    1021. (SA03RF0055, Amdt. #1-NS). Stem Cell Research. Funding. Bonds. Initiative Constitutional Amendment and Statute.
    Proponents: Roberta B. Johansen and James C. Harrison, c/o Remcho, Johansen & Purcell (323) 468-3391
    Establishes "California Institute for Regenerative Medicine" to regulate stem cell research and provide funding, through grants and loans, for such research and research facilities. Establishes constitutional right to conduct stem cell research; prohibits Institute's funding of human reproductive cloning research. Establishes oversight committee to govern Institute. Provides General Fund loan up to $3 million for Institute's initial administration/implementation costs. Authorizes issuance of general obligation bonds to finance Institute activities up to $3 billion subject to annual limit of $350 million. Appropriates monies from General Fund to pay for bonds. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: State cost of about $6 billion over 30 years to pay off both the principal ($3 billion) and interest ($3 billion) on the bonds. Payments of about $200 million per year. (source: California Secretary of State - Elections & Voter Information - 2004 Initiative Update)