The State : Prop. 73 Loses Court Ruling

In a blow to Proposition 73, a federal judge in Sacramento has ruled that candidates for elective office can spend money they raised before Jan. 1, 1989, despite the prohibitions of the campaign finance initiative. U.S. District Judge Lawrence K. Karlton, issued a permanent injunction overturning a provision of the law that had prohibited candidates from spending money in their campaigns if it was raised before the law took effect. In a suit brought by Democrats, Karlton ruled that such a prohibition violated the First Amendment right to free speech. As a result of his decision, Democratic candidates will be able to spend more than $12 million on future campaigns that they had banked before the first of the year.