Children's hospitals in California are returning to the ballot for the second time in four years to seek public bond financing for expansion projects. The bonds would benefit 13 hospitals in the state.
WHAT IT DOES
Authorizes $980 million in bonds to build, expand, renovate and equip children's hospitals in California. All five hospitals affiliated with the University of California would be eligible to apply for money and would share 20 percent of the pot, while eight other nonprofit hospitals around the state likely would be eligible to share the other 80 percent. The California Health Facilities Financing Authority - made up of Treasurer Bill Lockyer, Controller John Chiang and Gov. Arnold Schwarzenegger's finance director, Mike Genest - would pass out the money based on applications.
HISTORY
After the Legislature failed to put the bonds on the ballot, children's hospitals came to the ballot in 2004 with an initiative, Proposition 61. With 58 percent of the vote, the measure authorized $750 million in bonds to help the 13 eligible hospitals. Various projects, including $8.4 million to the UC Davis Children's Hospital for expansion of its neonatal center and 13 new beds, have eaten up about $437 million of the original bond measure.
WHAT IT COSTS
The Legislative Analyst's Office says the $980 million in bonds would cost state taxpayers about $2 billion, or about $64 million a year in principal and interest for 30 years.
MONEY WATCH
• Supporters have raised $6.5 million for the campaign so far, all of it from the eight nonprofit hospitals that would benefit from the bonds and the association that represents them.
• Seven of the eight hospitals have each given $853,355.
• Opponents have raised no campaign money.
SUPPORTERS
• California Children's Hospital Association
• The eight nonprofit hospitals eligible for funding
• Parents of seriously ill children
WHAT THEY SAY:
• Children's hospitals provide specialized care for the vast majority of seriously ill children.
• The bonds will provide funds for more beds and the latest medical equipment.
• The program amounts to a vital investment in the future of children.
OPPONENTS
• Lewis Uhler, president, National Tax Limitation Committee
• Assemblyman Ted Gaines, R-Roseville
• Ted Costa, president, People's Advocate
WHAT THEY SAY:
• California cannot afford additional debt payments when the state budget deficit is soaring.
• The approach is an abuse of the initiative process because it offers bonds, repaid by general taxpayers, to benefit a few nonprofit hospitals.
• Public investments in children's hospitals are best decided by the Legislature, which can weigh the benefits against other spending priorities.
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