Proposition 3: Children's Hospital Bond

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What is The Children’s Hospital Bond Act?

Proposition 3 authorizes $980,000,000 in bonds, to be repaid from the State’s General Fund, to fund the construction, expansion, remodeling, renovation, furnishing and equipping of children’s hospitals. A bond is a loan to the state by wealthy investors or private banks, which the state promises to pay back with interest. Bonds must be approved by voters because voters pay back the bond with their taxes, which could instead be used to fund other programs or services.

If Proposition 3 passes, 80% of the bond funds will go to hospitals that focus on children with illnesses such as leukemia, cancer, heart defects, diabetes, sickle cell anemia and cystic fibrosis. It also requires that qualifying children’s hospitals provide comprehensive services to a large number of children eligible for governmental programs and meet other requirements. The remaining 20% of the bond proceeds will go to University of California general acute care hospitals.

Children’s hospitals must meet the following requirements to receive money from the bond:

  • The money must contribute toward expansion or improvement of health care access by children eligible for governmental health insurance programs and indigent, underserved, and uninsured children;
  • The money must contribute toward the improvement of child health care or pediatric patient outcomes;
  • The hospital must provide uncompensated or undercompensated care to indigent or public pediatric patients;
  • The hospital must provide services to vulnerable pediatric populations;
  • The hospital must promote pediatric teaching or research programs.
What do supporters of Proposition 3 say?
  • It will extend and build upon the progress made by the 2004 Children’s Hospital Bond Act (Proposition 61), allowing for the purchase of new medical technologies and additional facilities expansion. These improvements will promote the health of the State’s most vulnerable children.
What do opponents of Proposition 3 say?
  • Most of the money will be used for equipment and “furnishing”, rather than improving and expanding hospitals, such as necessary earthquake prevention measures;
  • The proposition does not have a mechanism to bring federal matching funds to hospitals which assist Medi-Cal recipients. Grants are not eligible for Medi-Cal matching funds (while loans are);
  • This is the second round of bond money for children’s hospitals, many of whom are well-funded institutions with substantial endowments, while other non-profit hospitals in under-served areas get no grants and no help with capital costs.
Who supports Proposition 3?

Proposition 3 is supported by major donors to the Proposition 3 campaign, including Children’s Hospital Los Angeles, Lucile Salter Packard Children’s Hospital at Stanford, Children’s Hospital Central California, Children’s Hospital & Research Center at Oakland, Loma Linda University Children’s Hospital, Rady Children’s Hospital-San Diego, Miller Children’s Hospital, Children’s Hospital of Orange County, California Children’s Hospital Association

Who opposes Proposition 3?

Health Access, who has not yet taken a stance for or against Prop. 3, has voiced the above stated concerns.

(Partial Lists)

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