The Pacific Legal Foundation challenged the state of California's plan to issue $929 million in pension obligation bonds to fund part of its contribution to the $177.8 billion California Public Employees' Retirement System, Sacramento. The foundation, which represents the Fullerton Association of Concerned Taxpayers, claims that the bond issue — part of this year's state budget — would violate the California constitution because the bonds weren't submitted to voters for approval. A nearly identical bond issue was rejected by a state court last year.
"Lawmakers are operating California on credit cards, and leaving our kids to pay the bill at higher interest rates," said Thomas Babcock, president of the taxpayers group, in a statement.
H.D. Palmer, spokesman for the state finance department, did not return calls requesting comments.