California Proposition 4, Children's Hospital Bonds Initiative (2018)

California Proposition 4, the Children's Hospital Bonds Initiative, is on the ballot in California as an initiated state statute on November 6, 2018.

Overview

How would the proposed bond revenue be spent?

Proposition 4 would authorize $1.5 billion in general obligation bonds to provide for the Children's Hospital Bond Act Fund. The fund would be used to award grants to children's hospitals for construction, expansion, renovation, and equipment projects. The initiative would allocate the $1.5 billion in bond funds as follows:

  • 72 percent ($1.08 billion) to eight nonprofit hospitals providing comprehensive services to high volumes of children eligible for governmental programs and children with special health needs eligible for California Children’s Services.
  • 18 percent ($270 million) to five University of California general acute hospitals, including the University of California, Davis Children's Hospital; Mattel Children's Hospital at University of California, Los Angeles; University Children's Hospital at University of California, Irvine; University of California, San Francisco Children's Hospital; and University of California, San Diego Children's Hospital.
  • 10 percent ($150 million) to public and private hospitals that provide pediatric services to children eligible for California Children’s Services.

The state's legislative analyst estimated that interest on the bond would be $1.4 billion over 35 years, bringing the total cost of the bond to $2.9 billion.

How many times has the state voted on children's hospital bonds?

The 2018 ballot initiative is the third bond measure related to children's hospitals in California. California Children's Hospital Association developed all three of the ballot initiatives. In 2004, 58.26 percent of electors voted to pass Proposition 61, a $750-million bond measure for children's hospitals. In 2008, 55.26 percent of electors voted to pass California Proposition 3, a $980-million bond measure for children's hospitals. The California Children's Hospital Association developed both of the ballot initiatives.
Voters of California cast ballots on 40 bond issues, totaling $158.829 billion in value, from January 1, 1993, through June 5, 2018. Voters approved 32 (80.00 percent) of the bond measures—a total of $147.409 billion. As of September 1, 2018, California had $74.2 billion in debt from general obligation bonds. The state also had $32.7 billion in unissued bonds.[3]

Ballot Title

The official ballot title is as follows:

“Authorizes Bonds Funding Construction at Hospitals Providing Children’s Health Care. Initiative Statute.”

Text of the measure

Ballot summary

The official ballot summary is as follows:

  • Authorizes $1.5 billion in bonds, to be repaid from state’s General Fund, to fund grants for construction, expansion, renovation, and equipping of qualifying children’s hospitals.
  • Designates 72 percent of funds to qualifying private nonprofit hospitals providing comprehensive services to high volumes of children eligible for governmental programs and children with special health needs eligible for the California Children’s Services program, 18 percent of funds to University of California general acute care children’s hospitals, and 10 percent of funds to public and private nonprofit hospitals providing services to children eligible for the California Children’s Services program.