| All-County Taypayers Association | "The
price of freedom is eternal vigilance... |
THE PEOPLE SAID, "THOU SHALL NOT" We the people, by the clear terms of our NY Constitution, have prohibited the State from taking any money out of the general fund except by appropriation by law and from using public funds to pay the debt obligations of a public corporation. The Constitution also prohibits the State from borrowing money without voter approval and limits the amount of debt local governments can incur. New York City, for instance, is limited to 10% of the average full valuation of taxable real estate in the City, which works out to be $32 billion. However, government does not like to be restrained by the people. It likes to spend money and wield power. So, in 1995, the state asked the people for their approval of ballot Proposition 3, which included a set of amendments to the Constitution including one which would have allowed the State to use a public Authority to issue bonds without limit, and without voter approval, to aid "distressed municipalities," with no definition of "distressed". The people voted "no" overwhelmingly. However, in March of 1997, a law was enacted which created the New York City Transitional Finance Authority ("TFA") and authorized it to issue up to $12 billion in long-term bonds in aid of NYC. The law itself acknowledged that it is unconstitutional. It not only exceeds the constitutional limit on debt for NYC but is to be paid off from income and sales taxes, without appropriations by law, all in spite of other constitutional restrictions. On June 2, 1997, ACTA people brought the matter to the Judiciary. * Click here * to see a copy of their briefs to the Appellate Division of State Supreme Court. |