Court Rejects Cities’ Bid to Block Borrowing Plan
A Superior Court has turned down a request by Cerritos and 35 other California cities to block a key part of Gov. Arnold Schwarzenegger’s $15-billion borrowing plan.
The cities filed a suit on March 4 asking the court to bar the state from raiding their sales tax revenues to repay the deficit bond.
Under the plan approved by voters March 2, the state would dedicate a quarter-cent of the sales tax, which cities normally would keep, toward repaying the bond.
The cities, in turn, would receive a share of property taxes that normally goes to the state.
Cerritos City Manager Arthur Galucci said the city plans to appeal.
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