California Teachers Association wants $40 million line of credit

As blurbed here, the CTA's controller, Carlos Moreno, says it's already spent all of the money it expects to get over the next three years from the recent $60 annual fee it charged its members to conduct their anti-Arnold campaign.

Now, they want a $40 million line of credit.

From the controller's affadavit in this PDF file:

Since June 21, 2005, CTA has continued to spend considerable sums of mone on the initiative campaign. Spending this money has necessitated CTA obtaining a $14 million loan. We are currently paying interest on that loan. CTA has spent the money on the initiative in reliance [on the $60 increase]...

CTA is in the process of negotiating a necessary $40 million line of credit. The proposed terms for the new line of credit call for the income stream from the $60 dues increase, together with CTA's other ongoing income, to pay back the principal and interest. If the TRO is granted, it will greatly harm or destroy CTA's ability to get this line of credit. If CTA is unable to get this line of credit, there is a significant risk that an outstanding $20 million line will be called. Millions of CTA's members dues dollars are possibly at stake...

Previously: "Don't believe the California Teachers Association TV commercials".

UPDATE: From this:

The governor's people have tallied up the money raised so far by the unions against his initiatives, accounted for transfers among the committees and say the total now tops $100 million...

California · Tue, 10/11/2005 - 12:29 · · Importance: 1