Gov. Arnold Schwarzenegger’s May budget revision is expected to include a proposal to shift $2 billion from local governments to the state government, according to the California State Association of Counties, which decried the idea in a news release Tuesday.

The budget maneuver would call for a suspension of 2004’s Proposition 1A, a constitutional amendment designed to discourage such fund shifts from local governments to the state.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.