Friday, March 12, 2010
SAN DIEGO San Diego County is getting back $150 million in borrowed tax money. The state took the money to close its budget gap. Half of the borrowed property tax money has already been deposited in local accounts. The other half will be returned in May.
The state is only allowed to borrow the funds under special circumstances. And it must be repaid within three years with interest. The League of California Cities helped create a financial arrangement with the state and private banks to have the money repaid early.
Dan Carrigg is the league’s legislative director. He says many cities would have struggled if forced to wait three years to get their money back.
“It would have been very difficult for a number of communities to absorb this type of hit.”
A newly enacted proposition allows the state to borrow tax money but also restricts how often they can do it.