When people hear "bond" it's likely to conjur up positive sentiments. Few people think "tax," but that's the decision confronting Californians. Come November, $14.4 Billion in bond measures will be on the ballot.
Over the last decade, 80% of school bonds have been approved since 2001 when laws changed, requiring only 55% approval. School officials have spotted this easy money and are drowning citizens with a 600% increase in the amount of bonds compared to the last election.
The true cost of bonds are routinely understated. The $2.8 billion Proposition Z bond will require repayment of around $8 billion when interest is included — nowhere is this true cost mentioned on the ballot. Bonds are the most insidious form of taxation because the entire amount is received up front with future citizenry required to repay the money years later.
--MR
