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Court overturns ruling against state on fund raid

Court overturns ruling against state on fund raidThe Arizona Court of Appeals says the Legislature acted within its authority in 2009 when it took nearly $4.7 million from a special fund for injured workers in order to help keep the state in the black during a budget crisis.

A three-judge panel’s ruling Friday says the money taken from a special fund of Arizona’s worker’s compensation system belonged to the public and is subject to legislative appropriation.

That overturns a trial judge’s 2010 ruling that the money transferred into the state general fund was private money held in trust by the state.

Several business groups supported the Industrial Commission’s lawsuit that involved money paid by insurance companies and self-insured employers.

Intended uses included paying for vocational rehabilitation of injured workers and paying claims against insolvent insurers.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

One comment

  1. I believe this decision is just another example of how the government can cause a major problem with its lack of oversight and then bail themselves out using funds that are designed for a specific purpose. It is wrong, against public needs, and unethical in its abuse.

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