PROP 12 – Vote YES
Proposition 12, the VETERANS’ BOND ACT OF 2008, provides for a bond issue of nine hundred million dollars ($900,000,000) to provide low interest loans to California veterans to purchase farms and homes. The measure was legislatively-referred to the ballot in Senate Bill 1572 which passed unanimously in both the in both the California state senate and assembly.
Background:
California began the veterans’ home loan programs in 1922. California voters have subsequently been asked 26 times to fund the program and have voted “yes” all 26 times, for a total of $8.4 billion in the past. The 2008 effort is the 27th time voters will have been asked to support the program. Prop. 12’s request for $900 million is the largest request for a Cal-Vet bond. Throughout its history, the Cal-Vet program has been totally supported by the participating veterans, at no direct cost to the taxpayer. However, because general obligation bonds are backed by the state, if at any time in the future the payments made by those veterans participating in the program do not fully cover the amount owed on the bonds, the state’s taxpayers would pay the difference.
Arguments:
Opponents argue that the government should not be in the business of providing loans, no matter how noble the cause or at the very least, the program should be limited to veterans who have served in a combat zone.
Recommendation:
My recommendation is to vote YES. While I philosophically oppose the government getting involved in private lending, this program has been running since 1922 and has yet to incur a cost to taxpayers. Furthermore, helping veterans to purchase a home is probably the least objectionable use of the sale of government bonds that I can imagine and it’s the least we can do for those who have honorable served our country.
For more information: Voter Information Guide – Prop 12
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by David Boaz or 
by David Bergland, both excellent books on libertarian thought.
