The Little Brown Reader: Weintraub: State deficit bond rests on shaky ground

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August 25, 2003

Weintraub: State deficit bond rests on shaky ground

sacbee.com (Opinion): State deficit bond rests on shaky ground

By Daniel Weintraub -- Bee Columnist
Published 2:15 a.m. PDT Tuesday, August 5, 2003

The California Constitution says that the Legislature "shall not, in any manner, create any debt or debts" greater than $300,000, unless such an obligation is for a "single object or work" and is approved by a vote of the people. The only exception is in case of war, "to repel invasion or suppress insurrection."
The pending recall election aimed at Gov. Gray Davis might be considered an insurrection, I suppose. But I don't think that such a threat is the kind of exception the framers had in mind when they prohibited the Legislature from using borrowed money to pay for the ordinary, ongoing expenses of state government.

Yet the budget passed last week and signed Saturday by Davis is built upon a $10.7 billion bond measure to finance the state's accumulated budget deficit. These bonds, to be repaid over five years, are in an amount far greater than $300,000. They will not be used for a "single object or work," such as building a school or buying parkland. And they will not be submitted to a vote of the people.

How then, can the bonds possibly be legal? Some people, not surprisingly, think they are not....

Read It Rating: 6
Left/Right Rating: R1
Freedom Rating: -2
Learning Percentage: 75%

Posted by Lance Brown at August 25, 2003 11:52 PM | TrackBack

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