State Pension Bonds Ruled Illegal
Court Rejects State Pension Bonds Because Voters Were Ignored
Victors Call Ruling “a Fourth of July Gift to Californians”
Contact: Harold Johnson Attorney Pacific Legal Foundation (916) 419-7111 hej@pacificlegal.org www.pacificlegal.org
SACRAMENTO, July 3, 2007: A California appellate court today rejected the State’s bid to float $560 million in bonds for government pensions without approval of the State electorate. The Third District Court of Appeal affirmed a lower court’s ruling that the State’s proposed “pension obligation bonds” are illegal because they were not submitted to voters as the California Constitution (Article 16, Section 1) requires for state debt in excess of $300,000.
“This is a great Fourth of July gift to Californians,” said Pacific Legal Foundation Attorney Harold Johnson, who represented the Fullerton Association of… Read More