One Bond Issue Too Many: No on 181

Spending more to improve rail transportation makes sense in principle, but circumstances make it difficult to justify Proposition 181, the proposed Passenger Rail and Clean Air Bond Act. We urge a “no” vote.

Proposition 181, the only bond issue on the November ballot, would authorize the state to sell $1 billion in general obligation bonds to fund California’s passenger rail transportation network. The money would be used to buy trains, improve and construct track and passenger stations and expand rail service.

The bond measure would be the final in a series of three $1-billion statewide bond issues proposed for rail projects. Voters approved the first in 1990, but the second was rejected in 1992 despite a million-dollar campaign for it. Proponents of the defeated 1992 measure have displayed little support for 181. Even Assemblyman Jim Costa (D-Fresno), who authored the transportation bill that included the bond measures, has, although reluctantly, dropped his support of 181. He and some other lawmakers had sought to remove it from the ballot because of voters’ widespread anti-bond mood; all of last June’s bond issues failed miserably. Gov. Pete Wilson, however, opposed postponing a vote on 181.

The state’s transportation budget already faces major shortfalls because of earthquake repair costs, less-than-expected gasoline tax revenues and the defeat of the 1992 bond measure. The main sources of support for 181 seem to be the state Business, Transportation and Housing Agency and Los Angeles’ Metropolitan Transportation Authority (the measure would produce about $500 million for Los Angeles rail projects). Voters understandably have doubts about giving more funds to the troubled MTA at the moment.

Proposition 181 would cost about $630 million in interest (if the bonds sold at 6%), money that would come from the already-stretched general fund. The state’s fiscal crisis makes it unwise to take on this added debt. For some time this newspaper has agreed with fiscal experts that California should maintain a debt ceiling of no more than 5.2% of the general fund. Passage of 181 together with the continuing sale of previously authorized bonds would increase indebtedness to 5.7% by the 1996-97 fiscal year.

The Times vigorously backed the two previous bonds and 1990’s Proposition 111, which raised gasoline taxes to pay for road improvements and rail. We support rail transit, but tough fiscal choices require a “no” on 181.