Editorial: Ineffective Prop. 60a will tie up extra money

Proposition 60a is the wrong way to pay off the Proposition 57
bond issued last year. It forces the state to spend any money made
from surplus property sales and ties the hands of the
Legislature.

Without 60a, the state would pay interest on the bond yearly,
which should be complete in about 14 years.

But Proposition 60a will not do much to help pay off the bond
and will prevent the Legislature from spending revenues from
property sales on anything else.

Proposition 60a does not guarantee any reduction of the interest
payments. It will not require the sale of any particular
properties.

If the past is any example, Proposition 60a would only pay about
$30 million of the interest a year ““ the end result would
likely be a few tens of millions in actual savings over the next 9
to 14 years. These small savings are not enough to justify locking
yet another source of funding into a specific pool.

Bond interest needs to be paid, but forcing specifics on the
Legislature with Proposition 60a is not the way to do it.