AdWatch monitors the factual accuracy of ballot measure TV advertising.
ADWATCH ANALYSIS
This ad says that Prop. 3 will provide funding to children’s hospitals to help them save lives without raising taxes. Some statements are accurate, while others are debatable.
What the ad says:
This ad for Prop. 3 says that the measure would provide funding to children's hospitals to help them save lives without raising taxes.
[Paid for By]: YES ON CHILDREN'S HOSPITALS
Statement: California children's hospitals take care of thousands of kids with leukemia, cancer, serious illness and injuries.
Analysis: 
This statement is true. According to the Office of Statewide Health Planning and Development, California children's hospitals care for thousands of critically ill children every year.1 Prop. 3 provides funds for "[c]hildren's hospitals [that] provide specialized treatment and care that has increased the survival of children suffering from serious diseases and illnesses such as leukemia and other cancers, heart defects, diabetes, sickle cell anemia, and cystic fibrosis."2
Statement: The Children's Hospital Bond does not raise taxes.
Analysis: 
This statement is technically correct. The bonds will be repaid over thirty years from the state general fund, which receives most of its money from taxes. The Legislative Analyst's Office (LAO) estimates that if the state uses $980 million in bonds at an interest rate of 5 percent a year, the expected interest on the bonds will amount to $933 million. California would thus pay approximately $2 billion over thirty years. Payments would average $64 million per year3 or $1.76 per Californian each year. Although taxes would not increase as a direct result of Prop. 3, the bonds must be repaid through tax revenue.
1 Office of Statewide Planning and Development, Healthcare Information Division Patient Discharge Pivot Profiles, August 2008 http://www.oshpd.ca.gov/HID/Products/PatDischargeData/PivotTables/PatDischarges/default.asp.
2 California Secretary of State’s Office, October 2008, http://www.voterguide.sos.ca.gov/text-proposed-laws/text-of-proposed-laws.pdf.
3 Legislative Analyst’s Office Proposition 3 Children's Hospital Bond Act. Grant Program. Statute,
July 2008.
Posted:
Analysis done by the Center for Governmental Studies.
