Unruh

This case presents the question whether recently enacted statutory authorization for state borrowing of money to be expended *157 for any authorized General Fund purpose transgresses the $300,000 limitation on state indebtedness imposed by article XVI, section 1, of the California Constitution. We hold that it does.

Petitioner Pooled Money Investment Board (Board) consists of the Controller, Treasurer, and Director of Finance of the State of California. (See Gov. Code, § 16480.1.) By majority vote of the Controller and Director of Finance, the Board adopted resolutions directing respondent Jesse Unruh, as Treasurer, to issue and sell up to $150 million in commercial paper notes and up to $150 million in bank credit notes representing moneys borrowed by the state in fiscal year 1983-1984. The Treasurer refuses to comply with the directive upon the advice of counsel that serious legal questions exist regarding the validity of Government Code sections 17281-17294, which purport to authorize the state to undertake such borrowing. In this mandamus proceeding, the Board seeks a peremptory writ of mandate compelling the Treasurer to comply with the resolutions adopted pursuant…