Official summary
• A one time Economic Recovery Bond of up to fifteen billion dollars ($15,000,000,000) to pay off the state's accumulated General Fund deficit as of June 30, 2004. • The Economic Recovery Bond will be issued only if the California Balanced Budget Act is also approved by the voters. • The bonds will be secured by existing tax revenues and by other revenues that can be deposited in a special fund. Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: • One-time increase, compared to a previously authorized bond, of up to $4 billion to reduce the state's budget shortfall. • Annual debt-service savings over the next few years. • Above effects offset in subsequent years by higher annual debt-service costs due to this bond's larger size and the longer time period for its repayment. == Notes ==