Proposition 3 Bond Act 2008- Benefits 13 California Regional Children’s Hospitals

Proposition 3:

• Authorizes $980 million for grants to California’s 13 regional children’s hospitals

• Funds the construction, expansion, remodeling, furnishing, and equipping of children’s hospitals

• Costs the state $64 million a year for 30 years

• Cost divided by CA population = approximately $1.75 a year for each Californian

• 80% of the bond proceeds go to eight regional nonprofit children’s hospitals that focus on serious diseases and illnesses and 20% go to five University of California children’s hospitals

• 1. What is Proposition 3 - The Children’s Hospitals Bond Act?

The Children’s Hospital Bond Act, or Proposition 3 on the November 4 ballot, will provide $980 million to California’s children’s hospitals to help the hospitals:

• o Expand and renovate to make more room to treat more children
• o Purchase life-saving medical equipment for the treatment of the most seriously ill and injured children in the state
• o Upgrade facilities to meet California’s seismic standards.

2. How much will Proposition 3 cost California taxpayers?

The $980 million bond will cost the state $64 million a year for 30 years.  Approximately $1.75 a year for each Californian.

3. How many children’s hospitals are there in California?

13 regional children’s hospitals in California, including the five that are part of the University of California. (see full list below)

4. What are Children’s Hospitals?

California’s children’s hospitals are the regional, tertiary-care centers that treat children with the most serious and life threatening diseases like childhood leukemia, cancer, heart defects, sickle cell anemia, diabetes and cystic fibrosis. California’s children’s hospitals treat over one million children’s injuries and illnesses each year without regard to a family’s income or ability to pay and are the pediatric health care safety net for the majority of the state’s low-income children.

Children’s hospitals are also the training centers for pediatric sub-specialists and other pediatric healthcare professionals and they are the nation’s premier pediatric research centers making children’s hospitals the source of scientific discoveries in biomedical research that benefit all children. For example, the polio vaccine was first tested in a children’s hospital and pediatric AIDS was first diagnosed at a children’s hospital.

5. Why is there a need for Proposition 3?

Advances in technology and research are bringing hope to children and their families where there was no hope before. Medical technology improvements occur rapidly, especially with regard to the most serious childhood illnesses. Children’s hospitals must have access to the latest technology in order to effectively treat these seriously ill children. Without additional capital investments, children’s hospitals will not meet the needs of California’s burgeoning population of children which the Department of Finance projects to grow by 35% over the next two decades.

6. What kind of projects will be funded by Proposition 3?

This bond money will be used to purchase new medical technologies and to expand and renovate Children’s hospitals to make it possible to provide more care to more children. Past bond funds have helped build complete new buildings like the patient towers under construction at Children’s Hospital Los Angeles and Miller Children’s Hospital in Long Beach as well as expansions, renovations and equipment purchases in Neonatal Intensive Care Units (NICU), Pediatric Intensive Care Units (PICU), Emergency Departments, surgical suites, and cancer centers. Each of the eligible 13 children’s hospitals has qualifying projects that cannot be completed without this bond.

8. Why do the children’s hospitals need more than was approved by the voters in 2004?

The escalating cost of construction, as well as the growing population of California children, has created capital and capacity challenges for children’s hospitals. Planned and essential hospital projects will cost children’s hospitals hundreds of millions of dollars over the next few years and bonds are the only realistic way to fund these needed improvements and expansions. This $980 million bond fund will be used to expand and improve children’s hospitals and purchase new medical technologies, which will help ensure access for seriously ill and injured children.

Funds generated by the successful passage of Proposition 61 in 2004 with 58% of the vote have been critically important to the children’s hospitals’ ability to expand their capacity. But the capital needs of children’s hospitals far exceed the funds authorized in 2004 and nearly 70% of those funds have already been committed.

A recent RAND report confirms what the children’s hospitals have been experiencing: Since 2001, hospital construction costs in the state have almost doubled. In California, the finished cost of a fully furnished and equipped new hospital building is about $1,000 per square foot - more than three times that of a new office building.

9. How can voters be sure the bond money will be spent for the purposes intended?

Bond money approved by voters cannot be spent for anything other than what voters intended. Each children’s hospital must apply to the California Health Facilities Financing Authority for the funds. The authority will approve and oversee each project.