Posts Tagged ‘state constitution’

On March 22, 2011 Riverside City Council unanimously transferred $100,000.00 from the public general fund to the Sendai Relief Fund.  The queston now became, can a public entity contribute a gift of public funds to another, even if it is for a good cause?  As a general rule,  you can only give away to others what you own, which includes cities.  But by definition funds owned by the city are public, and elected and appointed officials are stewards of those funds.  Therefore, according to Article XVI, section 6 of the California Constitution  undeniably prohibits gifts of public funds, therefore the City of Riverside gifting $100,000.00 of public funds to Sendai is not only illegal but a violation.  Individual contributions by elected and appointed officials and personal would have been the legal way of raising appropriate relief funds to gift to Sendai.   Rules and regulations have been developed for a reason, to prevent taxpayer fund abuse.  The State constitution is very clear, there must be direct or primary public purpose and benefit to the public at large when general funds are used to avoid being a gift.

UPDATE: 05/24/2011: NOTED AT CITY COUNCIL, $100,000.00 WITHDRAWN FROM GENERAL FUND AS A GIFT TO SENDAI.  HOW MANY MORE GIFTS OF CONTRIBUTION FROM THE GENERAL FUND HAVE OCCURRED FOR OTHER NON-PROFIT ORGANIZATIONS? 

UPDATE: 05/29/2011: RIVERSIDE PUBLIC UTILITIES DONATES $2000.00 TOWARDS A DINNER HONORING MAYOR RON LOVERIDGE AND WIFE.  A SILVER SPONSORSHIP INCLUDES A TABLE WITH A SEATING FOR FOUR AND AN AD ACKNOWLEDGEMENT.   IF THE DONATION WAS WITH PUBLIC FUNDS AS INDICATED BY THE SPONSORSHIP LISTING, THIS WOULD BE ILLEGAL AND A VIOLATION OF ARTICLE XVI, SECTION 6 OF THE CALIFORNIA CONSTITUTUION.   THIS WOULD ALSO BE A CONFLICT OF INTEREST SINCE RIVERSIDE PUBLIC UTILITIES IS A PUBLIC ENTITY.  TMC INVESTIGATES, STAY CONNECTED.