Proposition 57 (officially, theEconomic Recovery Bond Act) was aCalifornia ballot proposition on the March 2, 2004 primary election ballot.[1] It was passed with 4,056,313 (63.4%) votes in favor and 2,348,910 (36.6%) against.[2] The proposition authorized the state to sell $15 billion in long-termbonds to pay off accumulated deficits. Proposition 57 went into effect only becauseProposition 58 (the California Balanced Budget Act) also passed.
Propositions 57 and 58 were the centerpiece ofGovernorArnold Schwarzenegger's plan to resolve California's budget problems. Schwarzenegger campaigned heavily for the passage of Propositions 57 and 58.[3]California State SenatorTom McClintock, Schwarzenegger's fellowRepublican and rival in the2003 gubernatorial recall, was one of the chief opponents of Proposition 57.[4]
The last payment of these deficit bonds was made Wednesday, August 5, 2015.[5] Included in the payments made over the life of the bonds were payments into a state escrow account, where interest payments totaling $4.1 billion were put aside to be paid out through July 1, 2019.[5] When the bonds were paid off, Schwarzenegger said, "I’m glad this chapter of California’s fiscal history is finally closed."[5]
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:[1]
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