Posted on 11/17/2005 5:09:50 PM PST by freedomdefender
SACRAMENTO - A plan to sell $525 million in bonds to cover part of the state's pension obligation this year violates constitutional mandates that voters approve all large loans, a Sacramento County judge ruled Thursday.
It is the second time in three years a court has thrown out the idea of selling bonds to pay for retirement costs. Finance officials in Gov. Arnold Schwarzenegger's administration said they will appeal.
"This decision is a victory for all Californians against spendthrift practices in the state legislature," said attorney Harold Johnson of the Pacific Legal Foundation.
The Sacramento-based conservative nonprofit group filed the challenge to the bond sale last year on behalf of an anti-tax group from Orange County.
"Today's court ruling should make it clear to lawmakers that they can't run California on credit cards," Johnson said in a statement.
He said Article 15 of the state constitution prevents lawmakers from borrowing more than $300,000 without voter approval. Sacramento County Superior Court Judge Raymond M. Cadei agreed.
The governor's office said the bond sale does not create new debt, but rather refinances existing debt.
The bonds are tied to pension-reform measures negotiated last year with unions that will save three times the cost of the pension bonds, Department of Finance spokesman H.D. Palmer said.
The anticipated $525 million proceed from the bond sale was included in the state's existing budget, but none of the bonds was sold because of the pending court case. Palmer said that if the ruling is allowed to stand, the governor will need to address the loss of that money in next year's budget.
ping.... go home Sacramento lawmakers
ping
Didn't I just read that the LAO says our fiscal problems have recently abated? Well then, they can take all that lovely cash they were thinking of spending and pay the pension fund.
You're committing common sense. Better watch that.
It is exactly what the majority of California voters chose when they voted or did not vote in the recent election.
Try you socialist creeps. Put the burden of your unfunded debt ON THE BACKS OF THE TAXPAYERS (what else is new, right?) -- these socialists just continue to SPEND MORE THAN THE STATE TAKES IN -- but they don't care -- just RAISE TAXATION even beyond the present obscene confiscatory levels ---
And the voters just love these liberal socialist fools...
Not exactly. Fiscal sanity is all too UNcommon in this State.
debt is debt ,, I love how we can classify good debt , acceptable debt and bad debt.. makes it seem so manageable..
Also, shouldn't it be spendplenty not spendthrift.. in the following ..
..a victory for all Californians against spendthrift practices in the state legislature..
thrift happens, just not in California since the unions set up shop in the legislature.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie.Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
Alternatively, we could liquidate the CALPERS and CALSTRS funds, fire the larda** state workers and teachers, and prosecute the state employee union leaders (and Dem pals) under RICO .
But that would make sense so we mustn't do it.
This borrowing scheme was proposed by the executive, not the legislature.
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