Union Watch: November 2014 – $11 billion in new borrowing proposed via 118 local bond measures, 81% passed. Of the 117 local proposals for new taxes, 68% passed.June 2016 – $6.2 billion in new borrowing proposed via 48 local bond measures, an estimated 93% passed. Of the 42 local proposals for new taxes, an estimated 66% passed.
November 2016 – $32.2 billion in new borrowing via 193 local bond measures, and 224 local proposals for new taxes!Not only do these general and primary and special election tax and bond measures accumulate year after year, but they nearly always pass! The primary source for this information is the California Tax Foundation, who have just produced another excellent guide “Local Tax and Bond Measures 2016.” This time, they have not only compiled a list of all of the proposed local taxes and bonds, but for each of the proposed new local taxes, they have compiled the projected annual collections. The result is stunning.
It seems to me that the more debt the greater the interest rage risk. A half point rise in 30 billion of ten year local bonds, hmmm... A half point jump in the ten year means a 30% jump in interest payments. So, we have these local officials watching rates, looking to lower them. Meanwhile, we have thee union pension managers looking at rates, looking to raise them.
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