[ECM]

I yearn for the days when the word "lawsuit" wasn't in every other news story.

[KantianBurke]

"Now the agencies want to see progress toward closing a "structural" budget gap between revenue and spending, which lawmakers have papered over with massive borrowing in recent years."

[2banana]

Meanwhile, the state's financial picture may become more complicated by a lawsuit to be filed today by 38 cities challenging the repayment plan for Proposition 57 bonds. The cities claim the bonds will be financed by taking part of the sales tax revenue that currently goes to local government, about $1.3 billion a year.

Who cares if prop 57 passes or not? Cities can do what they want no matter what the law says...

[calcowgirl]

triple-flip ping

[BlueNgold]

In the interest of full disclosure:
Cerritos Mayor Gloria Alvarez Kappe - Democrat

[Amerigomag]

This is what it all means.

Prop 57/58 increases taxes or reduces services take your pick.
The resultant reduction in services does not save California one thin dime.
Local governments generally failed to recover their lost revenue yesterday
They'll be back with a vengeance in November.
Consumption taxes, either state or local, will be raised by about 1% by Dec 30
Schwarzenegger has done little to improve the business climate in California
Confidence ratings affecting loan rates will not rise until this climate improves
Schwarzenegger has done nothing to reduce state spending
Schwarzenegger's only concrete proposal is an increase in state spending
Prop 57/58 allows the governance to avoid difficult issues until December
Until then,California's electorate and Wall Street are guiding the state
California must actually reduce spending to get a favorable bond rate
If the bonds are floated before July 1 (before cuts) the rate will be frightening
The litigation filed yesterday by local governments will be successful.
Wall Street and the courts will make it so.
Schwarzenegger, thus far, has been a better actor than a governor...but its early.
Most of Schwarzenegger's investments are in property.
Whatever happens will protect property values in California
People knew and got exactly what they wanted when electing Schwarzenegger