Brown
California Medical Ass'n v. Brown
Opinion
Lead Opinion
Marchiano, J.
The California Medical Association (CMA) contests the legality of a loan made from the Contingent Fund (Contingent Fund) of the Medical Board of California (Medical Board) to the state General Fund to help balance the state’s fiscal year 2008-2009 budget. Government Code section 16310 authorizes loans from special funds to the General Fund if the *1452 General Fund is exhausted and the loan does not interfere with the object for which the special fund was created. We conclude that the loan to the General Fund was lawful under this statute, and affirm the denial of CMA’s petition for writ of mandate to require that the money be returned to the Contingent Fund.
I. INTRODUCTION
A. Factual and Procedural Background
Item No. 1110-011-0758 of section 2.00 of the Budget Act of 2008 provided for “transfer by the Controller, upon order of the Director of Finance, from the Contingent Fund of the Medical Board of California to the General Fund” the sum of $6 million. (Stats. 2008, ch. 268, § 2.00.) The provision stipulated: “The amount transferred in this item is a loan to the General Fund. This loan shall be repaid with interest calculated at the rate earned by the Pooled Money…