Judge blocks part of Calif. state budget borrowing plan

Sac Bee ^ | 9/24/03 | AP - Scaramento

[NormsRevenge]

SACRAMENTO (AP) - A judge has blocked as unconstitutional the state's plan to borrow nearly $2 billion to pay for employee pensions, part of the more than $15 billion in borrowing lawmakers relied on to balance the budget.

If upheld on appeal, the judge's preliminary opinion could raise legal questions over other planned bond sales in the $99 billion budget signed by the governor early last month, and possibly lead to further cutbacks and new taxes.

[NormsRevenge]

.

[jwalsh07]

California judge rules money is fungible. You were right all along. :-}

[onyx]

The Howard Jarvis Taxpayers Association, which filed the lawsuit challenging the borrowing, called the judge's decision "a significant victory for taxpayers."

HJTA has endorsed Arnold, of course!

[EggsAckley]

PING!

[PhiKapMom]

The news just gets better and better.

[rudypoot]

"We had to think outside the box in terms of how to address it. The borrowing was supported by both sides of the aisle."

Reads: "We had to think outside the [Constitution] in terms of how to address it. The [Constitution] was [ignored] by both sides of the aisle."

[Weimdog]

I believe it's against the state constitution to borrow money for the current year's expenditures without a vote from the electorate, and that's exactly what the fools did.

"Other groups are considering lawsuits to block the sale of more than $10 billion in deficit bonds because Californians did not vote on the bonds, as required by the state Constitution."

http://www.rppi.org/lifeordebt.shtml

[runningbear]

Kathleen O'Connell had this report on Ca budget:

Bipartisan Group of Former Lawmakers Lay Out Roadmap for Post-Recall Reform

((she is a democrat!))

[runningbear]

add to my prior post:

California's Financial Troubles Won't Wait for Recall

"The financial crisis already has negatively impacted everyone from state agencies to small businesses to individual taxpayers. And believe it or not, with jittery creditors and billions in debt, this crisis could still get worse. State leaders can show they are serious about curing our budget problems by establishing a commission to focus on these issues – even as the recall unfolds.

The recall election is an opportunity for taxpayers to ask the right questions about how we manage and finance state government and, just as importantly, how we repair the damage to the balance sheet of California so that all residents believe that this is still the state of great opportunity."

EXCERPTED

[Weimdog]

Here's more from Weintraub -

http://www.sacbee.com/static/weblogs/insider/archives/000672.html

[BurbankKarl]

Spokeshole

>>>>"This was an extraordinary year in which the state was facing an unprecedented shortfall," McLean said. "We had to think outside the box in terms of how to address it. The borrowing was supported by both sides of the aisle."

[DoctorZIn]

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