Self liquidating bond
A municipal bond that is issued to fund a specific revenue-producing project.
A revenue bond is backed by the income generated by the project, which will theoretically retire the debt when the project has paid for itself.
California's economic growth and quality of life are in part dependent on the adequacy of the state's public infrastructure.
The Governor has proposed a significant amount of new bond authorizations in several program areas.
In order to assist the Legislature, this report provides answers to questions often asked about bond financing by the state.
In addition, we describe the Governor's bond package, its impact on future state budgets, and key factors the Legislature should consider in evaluating any bond proposals.
Bonds are used by the state to finance capital outlay projects and the acquisition of land.