PROPOSITION 142 : Helping Veterans

Proposition 142 on the Nov. 6 ballot, the Veterans’ Bond Act of 1990, can be unreservedly recommended. Continuing a remarkably successful program that first began in 1921, Proposition 142 authorizes a $400-million bond issue to finance the Cal-Vet program of home and farm purchases by veterans. Over the last 69 years California voters have approved 23 veterans’ bond issues totaling about $7.1 billion. Throughout its long history, Cal-Vet has been entirely self-supporting. There has been no direct cost to taxpayers.

Money raised by the sales of Cal-Vet bonds is used by the Department of Veterans Affairs to buy homes, farms and mobile homes for resale to qualifying veterans. The state, because of its heavy participation in financial markets, is able to borrow money at interest rates considerably below those charged individuals. These advantageous rates are passed along to Cal-Vet program participants.

Monthly payments made by participating veterans to the Department of Veterans Affairs cover all principal, interest and operating costs. Besides directly benefiting veterans and their families, Cal-Vet contributes to the larger state economy by generating jobs in the construction industry and promoting economic activity in those trades and professions that serve the housing market.

More than 392,000 California veterans have been able to finance homes and farms under the Cal-Vet program. The 1990 Veterans’ Bond Act will open the housing market to thousands of additional veterans. We urge a yes vote on Proposition 142.