The governor backs the bonds, and so does his opponent Phil Angelides and the Democratic leadership in the Legislature. Opposition is limited to anti-tax groups, who are instinctively averse to bond borrowing.
I do share some of that aversion to bond borrowing. But according to a Reuters article, Wall Street doesn't have a problem with these particular bonds:
"The rating agencies are very constructive about it," said [portfolio manager] George Strickland[....] "They don't see any big risk. They believe California has the capacity to add that kind of debt."
With more than $50 billion in bonds outstanding, the prospect of an additional $42 billion in debt appears daunting to many. But David Hitchcock, managing director at Standard & Poor's in New York, said California's economy is growing at a solid pace, providing enough revenue to pay the state's existing debt and any approved on Nov. 7.
"Debt service wouldn't be more than about 6 percent of the general fund," Hitchcock said, noting that would be a level of little concern to Wall Street.
And so on. Worth reading the whole article.