Local Government Debt Passes Senate, Goes to Governor
This bill requires local governments to report all new government debts until it is fully repaid or redeemed in a debt accountability report to the California Debt and Investment Advisory Commission with specified information on each authorized debt issue and certify that this new local debt is consistent with their debt policies.
All members of the State Senate and State Assembly who voted supported this bill. California State Senator Robert M. Hertzberg states, “This bill ensures that bond management is transparent and accountable to tax payers and helps prevent lax oversight that can lead to mismanagement or misuse of bond proceeds.”
This bill is the result of an investigation into a crime where $3.9 million in San Francisco bond proceeds were stolen by an individual (Finance Director-Association of Bay Area Government) who pleaded guilty in Federal court to felony charges of wire fraud.
If Governor Jerry Brown vetoes this bill, I suggest that the Pasadena City Council adopt some of the provisions of this bill for improved management of debt.
– Floyd Folven