Appeals court rules that California officials have illegally used transportation funds
LA Times, 6/30/09
http://latimesblogs.latimes.com/lanow/2009/06/appeals-court-rules-that-california-officials-have-illegally-used-transportation-funds.html
A state appeals court ruled Tuesday that California officials have illegally siphoned away billions of dollars from mass transit in the last two years to balance the budget.
The decision by a panel of judges in the Third District Court of Appeal in Sacramento would put the state on the hook for $2.5 billion in transfers made in the last two years, said H.D. Palmer, a spokesman for the Department of Finance.
Nearly $1 billion more in such transfers is included in the 2009-10 budget under consideration in the Legislature.
Palmer said the state would appeal to the California Supreme Court within 30 days.
"You bet we're gonna appeal," Palmer said, adding that the state would ask for a stay of the ruling, which comes as elected leaders are already grappling with a projected $24-billion deficit.
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