General obligation (GO) bonds are a common way for state and local governments to build large public projects, from schools and libraries to roads, parks, and affordable housing. The government borrows money and then repays it over time, usually through higher property taxes.
It’s hard enough for local governments to convince a majority of voters that a future tax hike is necessary. But localities have to go one step further. A two-thirds majority is required for local bonds to pass.
Enter Prop 5. The statewide measure on the Nov. 5 ballot would lower the percentage of votes needed for a bond to pass, from two-thirds to 55%. It would apply to cities, counties, and special districts. In 2000, voters approved a similar measure for school bonds.
The measure’s author, Cecilia Aguiar-Curry (D-Davis), calls Prop 5 a “no-brainer.” It is supported by Cal Cities, the California State Association of Counties, the Contract Cities Association, and many local leaders. Proponents say it would give local governments more tools to build critical infrastructure projects and shelter.
Susan Shelley, Vice President of Communications for the Howard Jarvis Taxpayers Association, told CalMatters that Prop 5 “would be an engine for tax increases forever.” Howard Jarvis, the Chamber of Commerce, and the National Federation of Independent Business have raised $30 million to fight the measure.
A recent poll from the Public Policy Institute of California (PPIC) shows a close race, with 48% of likely voters supporting Prop 5.