- $16.4 billion of debt issues seeking approval in November
- Even if voters signed off, authority may not all be utilized
With California’s finances reaping the benefits of a booming economy, voters will have a chance to decide whether to run up the government credit card to alleviate a housing crunch and pay for public works: There’s about $16.4 billion of state bonds on the November ballot, the most since 2006.
But don’t expect a surge of sales even if voters feel generous. California already has the legal power to issue about $33 billion of bonds that have yet to be sold. Some of it was approved more than 20 years ago, according to data from the treasurer’s office. California has about $74 billion in outstanding general-obligation debt.
“They’ve definitely shown themselves to really pick their spots in terms of the market on when to make their debt issuances work for them, which is not always great if you’re an investor looking for more yield,” said Dora Lee, vice president at Belle Haven Investments, which manages about $7 billion of municipal bonds.
California holds statewide elections every two years. In November 2016, voters approved $9 billion for schools, the only bond measure on the state ballot.
In November 2006, voters signed off on all bond measures totaling more than $42 billion.
Here are the four state bond measures:
- Proposition 1:
$4 billion for affordable housing - Proposition 2:
$2 billion for supportive housing for homeless people who are mentally ill - Proposition 3:
$8.877 billion for water projects and habitat protection - Proposition 4:
$1.5 billion for children’s hospitals
Bloomberg Markets
By Romy Varghese
October 18, 2018, 8:09 AM PDT