CA: Court cases worsen state budget woes

Mercury News ^ | 4/17/04 | Ann E. Marimow

[NormsRevenge]

SACRAMENTO - A devastating flood that damaged thousands of Northern California homes and businesses nearly two decades ago is now weakening the state's already-fragile finances.

The state's liability in an 18-year-old Yuba River flood stems from one of a series of court cases that could complicate Gov. Arnold Schwarzenegger's plans when he presents his latest budget outline next month.

Taken together, three court decisions put the state on the hook for at least $850 million. Three other pending cases endanger at least another $1.1 billion. All told, an amount equal to about 3 percent of the general fund budget could be lost -- although the impact would be spread out over several years.

While the flood case began with a 1986 disaster, other litigation was sparked by attempts of Schwarzenegger and former Gov. Gray Davis to trim spending or find funds. With California's budget pinched in recent years, Capitol politicians have taken more dramatic actions that left the state vulnerable to lawsuits.

``The court risks are much larger and their consequences more imminent than in the past,'' said Brad Williams, senior economist for the non-partisan Legislative Analyst's Office.

The legal threats loom largest ``when the state uses creative methods for balancing its budget,'' said Fred Silva of the Public Policy Institute of California.

[NormsRevenge]

creative methods for balancing the budget?

They should try check-kiting ,, it's worked for DC politicians for years.

[NormsRevenge]

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[ElkGroveDan]

Hey what's going on here? I thought trial lawyers only righted wrongs and brought forth happiness and prosperity across the land.

Could it be that their relentless assault on the productive sector of our society might result in painful cuts to the most needy?

[Carry_Okie]

Wait until they start to pay on the regulatory takings cases.