California Legislature likely to ask voters to borrow $20 billion for climate, schools

SACRAMENTO, Calif. (AP) — Mired in a stream of multi-billion dollar budget deficits, the California Legislature on Wednesday will likely turn to voters for help.

Lawmakers are set to vote on whether to place a pair of $10 billion bonds on the November ballot. If approved by voters, the money would pay for the building of new schools and help communities prepare for the impacts of climate change.

California was swimming in money just a few years ago as budget surpluses totaled well over $100 billion through the pandemic. But the state had to slash spending to cover deficits totaling more than $78 billion over the past two years as revenues declined amid rising inflation and an economic slowdown in the state’s pivotal technology industry.

Money from the bonds would backfill some of those cuts, plus pay for a slew of priority projects up and down the state for years to come.

But the money isn’t free. The climate bond alone will cost taxpayers more than $19 billion to pay off, with annual payments of $650 million per year, putting more pressure on the state’s finances.

Asking voters for permission to borrow large sums of money is always risky, particularly when doing it multiple times in the same election.

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