By Alex Lane - And now, our final report on the Propositions you’ll be seeing on the November ballot. Today we’ll discuss Proposition 12, which “would authorize 900 million in general obligation bonds for veterans to buy homes and farms, extending a program that originally started in 1921. Supporters say Prop 12, or the Cal-Vet Home Loan Program, “enables veterans to obtain low-interest rate (home) loans…without costing the taxpayer one cent.” Supporters say that “all costs of the program, including all administration costs, are paid for by veterans holding loans” and that Prop 12 will “generate thousands of housing industry-related jobs with millions of dollars in annual payroll.” Supporters include the Chairman of the Committee on Veteran Affairs and State Assemblymen. But opponents argue that claims that the program poses no cost to taxpayers are “deceptive.” To finance loans to veterans, California would sell bonds to investors. But since the interest paid to bond holders is tax-free, “state and federal taxpayers end up subsidizing the program and the homes purchased under it,” supporters say. According to the Sacramento Bee, these loans would “leave taxpayers on the hook for some $59 million in annual debt.” Opponents say that as of July of this year, there were “still about 102 million remaining from past bond issues for veterans, so there is no urgent need to pass a new bond issue.” On November 4th, you’ll have the opportunity to help decide.
Tuesday, 28 October 2008 02:40
Proposition 12 - Cal-Vet Home Loan Program
By Alex Lane - And now, our final report on the Propositions you’ll be seeing on the November ballot. Today we’ll discuss Proposition 12, which “would authorize 900 million in general obligation bonds for veterans to buy homes and farms, extending a program that originally started in 1921. Supporters say Prop 12, or the Cal-Vet Home Loan Program, “enables veterans to obtain low-interest rate (home) loans…without costing the taxpayer one cent.” Supporters say that “all costs of the program, including all administration costs, are paid for by veterans holding loans” and that Prop 12 will “generate thousands of housing industry-related jobs with millions of dollars in annual payroll.” Supporters include the Chairman of the Committee on Veteran Affairs and State Assemblymen. But opponents argue that claims that the program poses no cost to taxpayers are “deceptive.” To finance loans to veterans, California would sell bonds to investors. But since the interest paid to bond holders is tax-free, “state and federal taxpayers end up subsidizing the program and the homes purchased under it,” supporters say. According to the Sacramento Bee, these loans would “leave taxpayers on the hook for some $59 million in annual debt.” Opponents say that as of July of this year, there were “still about 102 million remaining from past bond issues for veterans, so there is no urgent need to pass a new bond issue.” On November 4th, you’ll have the opportunity to help decide.
