Great news for Houston taxpayers is bad news for Mayor White
All that economic boom euphoria Mayor White was basking in last week had a bit of cold water thrown on it Monday:
In a defeat for Mayor Bill White's administration, a district court has ruled that the city of Houston must operate under two revenue-cap initiatives approved by voters in 2004.
The city had argued that a limited cap backed by the mayor, called Proposition 1, took precedence because it received more votes. Backers of Proposition 2, put on the ballot by resident petition, said the city had to put both caps into effect, and sought a court order.
In a summary judgment issued late Monday, state District Judge Tad Halbach agreed with the Proposition 2 plaintiffs.
The city will appeal the ruling, which the mayor and controller say has no immediate practical effect on city revenues since this year's budget was written to allow for both revenue caps.
"We will work through this and straighten it out," White said. "I don't think it will be a problem in the next fiscal year. So long as Prop 2 is out there, and if we don't get this cleaned up in the courts or in the charter, it could threaten our bond rating."
Ah yes, the bond rating. Let's rewind to last October:
The current rating and outlook presumes that the legal challenge by supporters of a competing, more restrictive measure that garnered less voter support is unsuccessful.
There is no reason government shouldn't face the same budgetary restraints many of us experience in our personal lives.
Posted by Anne Linehan @ 01/11/06 09:23 AM | Print |
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