Don’t blame Prop. 13
A recent letter bemoans the fact that money for infrastructure has to be borrowed at “residential mortgage rates” (which the writer tells us run from 5 to 15 percent).
What the writer does not tell us is that the county bureaucracy does not need to go into the open lending market for funds. All it needs to do is put the proposed expenditure on the ballot, and if it commands a two-thirds vote, the money is secured through a bond issue or similar low-rate source.
It seems to me that it is hard to blame Proposition 13, which, after all, represents the will of the voters of California (whose wisdom, in other respects, we hear much praise of) and can hardly be at fault for what, after all, is a bureaucratic lack of confidence in the soundness of expenditures sufficient to put them to a public vote.
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