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Suit to Block Bond Sale May Add to California State Deficit
LA Times ^ | Dec 10 04 | LA Times

Posted on 12/10/2004 4:43:17 PM PST by freedomdefender

A lawsuit filed Thursday by a conservative legal group stands a strong chance of adding $800 million to California's budget shortfall, experts say.

The Pacific Legal Foundation lawsuit seeks to keep Gov. Arnold Schwarzenegger from selling bonds to cover a scheduled payment into the pension fund for government employees. The sale of the bonds, which taxpayers would have to pay back over 20 years, was part of the governor's plan to balance the budget.

"This is a borrowing without approval of the voters," said Harold Johnson, an attorney with the foundation, which filed the lawsuit on behalf of the Fullerton Assn. of Concerned Taxpayers in Orange County. "The lawmakers of this state are getting into a credit card habit. It is time for a constitutional reality check for these reckless spenders."

(Excerpt) Read more at latimes.com ...


TOPICS: Front Page News; Government; US: California
KEYWORDS: arnold; budgets; calbondage; california; lawsuit; pensionbond; schwartzenrino; schwarzenegger

1 posted on 12/10/2004 4:43:17 PM PST by freedomdefender
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To: freedomdefender

I'd like to see someone block the implementation of Prop. 71 (embryonic stem cell research initiative). Regardless of one's view on stem cell research, this is a horrible precedent.


2 posted on 12/10/2004 4:45:31 PM PST by My2Cents (To those inclined to receive it, "Merry Christmas!" To those NOT so inclined, "Bah Humbug!")
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To: freedomdefender

They might block the sale, but I have it on good authority that the Yankees are willing to trade Giambi for Bonds.


3 posted on 12/10/2004 4:45:44 PM PST by proudpapa (of three.)
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To: proudpapa

Wrong story. Nevermind.


4 posted on 12/10/2004 4:46:26 PM PST by proudpapa (of three.)
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To: freedomdefender

I would applaud its success. Its time to slap California's liberal big spenders into reality.


5 posted on 12/10/2004 4:46:55 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: goldstategop

bttt


6 posted on 12/10/2004 4:56:16 PM PST by John Lenin
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To: freedomdefender; NormsRevenge; calcowgirl
Suit to Block Bond Sale May Add to California State Deficit

Hmmmm... a bit subjective with that headline aren't they?

Suit Seeks to Block Attempt to Mask Deficit with Illegal Bond Sale

There, that's better.

7 posted on 12/10/2004 5:05:42 PM PST by Carry_Okie (There are people in power who are truly evil.)
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To: freedomdefender
A lawsuit filed Thursday by a conservative legal group stands a strong chance of adding $800 million to California's budget shortfall, experts say.

That is hilarious.
How much is the interest on the bonds they are trying to sell?
What is the interest rate?

Funny thing is... they never mention that!

Borrowing money to pay off ridiculous retirement bennies? That is totally crazy.
If the money isn't there, the benefits must be reduced.

8 posted on 12/10/2004 5:12:18 PM PST by Publius6961 (The most abundant things in the universe are hydrogen and stupidity.)
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To: Publius6961
How long will it be before the average taxpayer figures out this won't work?
When they need to pass new bonds to pay off the interest on the old bonds?

Until around 20 of the chronic tax spenders in the legislature are given the heave-ho, state income isn't likely to improve. Not any time in my lifetime!

9 posted on 12/10/2004 5:18:45 PM PST by Publius6961 (The most abundant things in the universe are hydrogen and stupidity.)
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To: freedomdefender

$800 million is an interesting figure but just wait until the $8 billion structural deficit sits down in the room.


10 posted on 12/10/2004 5:19:16 PM PST by concentric circles
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To: freedomdefender; Carry_Okie; forester; sasquatch; B4Ranch; SierraWasp; hedgetrimmer; knews_hound; ..

Personal list.


11 posted on 12/10/2004 6:19:14 PM PST by farmfriend ( In Essentials, Unity...In Non-Essentials, Liberty...In All Things, Charity.)
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To: goldstategop; Carry_Okie
Wes Chesbro, D is spending some time here in Humboldt Co and was on local TV today slamming the Gov for deficit spending. I'm glad my wife learned to put my drinks in paper cups or I would be out buying a new TV tonight.
12 posted on 12/10/2004 6:58:56 PM PST by tubebender (If I had know I would live this long I would have taken better care of myself...)
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To: goldstategop
Its time to slap California's liberal big spenders into reality.

I second that. It's also time to give our moderate (R) big borrowers a swift kick.

13 posted on 12/10/2004 9:51:57 PM PST by calcowgirl
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To: tubebender

Yeah you couldn't believe the sight of a Democrat tough on spending!


14 posted on 12/10/2004 9:54:23 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: calcowgirl

Of course. I voted against Props 57&58 last year. We've borrowed but still haven't addressed the structural problems that are producing continuing budget shortfalls in California.


15 posted on 12/10/2004 9:57:12 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: farmfriend

BTTT!!!!!!!


16 posted on 12/11/2004 3:05:16 AM PST by E.G.C.
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