SENIOR SENATE PROPOSAL NO. 18

INTRODUCED BY SENIOR SENATOR FAUSTMAN

LEGISLATIVE COUNSEL'S DIGEST

SP 18: PUBLIC FUNDS.

THE STATE OF CALIFORNIA HAS BORROWED FROM FUNDS BELONGING TO STATE RETIREES IN ORDER TO MAKE UP FOR DEFICITS IN THE BUDGET.

THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD REQUIRE THAT ANY MONIES BORROWED BY THE STATE FROM A PUBLIC ENTITY BE PAID BACK AT THE MARKET RATE OF INTEREST WITHIN A MUTUALLY AGREED UPON TIME.

VOTE: MAJORITY.

SP 18: RELATING TO PUBLIC FUNDS

WHEREAS, GOVERNMENT BORROWING FROM FUNDS BELONGING TO STATE RETIREES, IN ORDER TO MAKE UP FOR DEFICITS IN ITS BUDGET, HAVE ALWAYS BEEN PAID BACK IN THE PAST; AND

WHEREAS, FUNDS BORROWED BY ANY OTHER ENTITY WOULD BE REQUIRED BY LAW TO PAY BACK THE FUNDS BORROWED IN A GIVEN PERIOD OF TIME AND WITH INTEREST; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR SENATE AND THE SENIOR ASSEMBLY JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2004 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT, BY CONSTITUTIONAL AMENDMENT OR OTHERWISE, THE GOVERNMENT'S BORROWING OF ANY MONEYS FROM ANY PUBLIC ENTITY BE ON THE CONDITION THAT THE MONEY THEN BE PAID BACK AT THE MARKET RATE OF INTEREST WITHIN A MUTUALLY AGREED UPON TIME; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE  STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER RESOLVED, 

THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE SPEAKER OF THE ASSEMBLY, THE PRESIDENT PRO TEMPORE OF THE SENATE, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.