New York appeals court announces it will hear taxpayer activist's case.

The New York State Court of Appeals yesterday said it will hear a case from a taxpayer activist who is challenging the constitutionality of the state's multibillion-dollar transportation financing plan.

An appeals court spokesman said the court has not set a calendar date for the case, which challenges a state plan to sell bonds through the Thruway Authority and the Metropolitan Transportation Authority without voter approval.

Legal observers say the case brought by Robert L. Schulz, president of the All-County Taxpayers Association, will determine the constitutionality of the state's practice of financing capital projects by issuing debt without voter approval through authorities. Schulz is suing the state, the authorities, and the state Legislature.

On Oct. 21, the state Supreme Court's appellate division ruled against Schulz. But the court also said, "There is a disturbing correctness to [Schulz's] argument."

Schulz charges that these bond issues violate provisions in the state constitution requiring voter approval for all sales of state debt.

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