ALAMEDA, Calif. — The California attorney general’s office appears to have junked a proposal by Democrats to raise $8 billion by securitizing revenue from bottle and can deposits.

The Assembly proposal arguably violates Proposition 58, a prohibition on long-term borrowing to finance deficits voters approved in 2004, according to a letter the attorney general’s office wrote this week to Andrea Hoch, legal affairs secretary to Gov. Arnold Schwarzenegger.

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