A judge ruled on Tuesday that the state has the right to take local redevelopment funds as a step to help close California’s budget deficit.
The ruling by Sacramento County Superior Judge Lloyd Connelly allows the state to take more than $2 billion from local redevelopment funds and transfer the money to school operations.
California Governor Arnold Schwarzenegger says that the money would better serve schools in those districts as a method to make up declining general fund revenue.
Connelly’s decision stated that the state could use the money towards schools located within redevelopment agency boundaries.
According to an Associated Press report, the California Redevelopment Association, the leading plaintiff in the case, was deciding whether to appeal.
“We strongly disagree with Judge Connelly’s ruling, which effectively says the Legislature has unlimited discretion to redirect local redevelopment funds to any purpose it wishes,” said John Shirey, executive director of the association, in a written statement. “The Legislature needs to deal with its budget problems by making hard decisions using its own limited resources — not by taking away local government funds.”
The following are notes from throughout the state of different local governments that will be affected:
- “Once again, Sacramento’s budget failures have serious consequences for San Jose and the entire state,” Mayor Chuck Reed said in a statement. “We’ve had to cancel and delay projects that would get our economy moving again.”- more by Chuck Reed
Woodland city officials not surprised by court decision – For Woodland officials, Tuesday’s decision by Sacramento County Superior Court preserving the state’s right to raid municipal funds doesn’t come as much of a surprise.
- Ruling means SF must pay state – The San Francisco Redevelopment Agency must contribute $28.8 million to the state, part of Gov. Arnold Schwarzenegger’s plan to require the state’s …
- Coachella Valley cities to lose $95 million to help balance state budget – A Sacramento court today upheld the California Legislature’s right to take redevelopment funds from cities for the next two years to help balance the …
- Judge’s ruling on local fund transfers could cost city of Tulare $1.8m – A Sacramento judge’s ruling could mean a $1.8 million hit to the city of Tulare’s budget. …
- State to take $4 million from Turlock RDA – The State of California is one step closer to a balanced budget, but the state’s solvency will come – in part – at the Turlock …
James Spencer can be reached at email@example.com