Voters decide on spending plans

California led US state and local governments asking voters to approve $66.4 billion in borrowing for schools, sewers and other public works yesterday as a contracting economy and higher costs damp taxpayers' appetite for new debt.

Voters in 41 states from Rhode Island to Alaska are weighing the second-biggest slate of bond measures after November 2006's $78.6 billion, according to Ipreo, a New York-based financial data provider. California has the largest referendum, $9.95 billion in funding for a high-speed rail network, with proposals around the state totaling almost $42 billion.

Taxpayers, who approved an average 82 percent of bonds on local ballots the past decade, may not be as receptive this year. Wall Street upheaval drove interest rates on tax-exempt debt to record highs, hurt consumer spending, increased unemployment and prompted emergency federal government action to shore up the financial system.