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Disputes over redevelopment money could entangle state budget

July 13, 2012 | 11:39 am

Brown budget

It's something of an annual tradition for the California budget -- the lawsuits and red tape that trip up the state's spending plan. In the fiscal year that just ended, judges and the federal government blocked hundreds of millions of dollars in spending cuts to healthcare programs for the poor.

This year, it's the battle over redevelopment money that could cause problems for the state's bottom line. Gov. Jerry Brown's administration is counting on $3.1 billion in leftover cash and property taxes from defunct redevelopment agencies, but some cities are reluctant to give up the money.

The full story ran in Friday's Los Angeles Times.

Several cities sent letters of protest along with payments that were due to the state this week. At least one planned to file a lawsuit, while others indicated they wouldn't pay, or would pay less than what the state demands, according to the League of California Cities.

The state has threatened steep penalties for cities that don't turn over the money. But the nonpartisan Legislative Analyst's Office has not backed down from its warning that there may be $900 million less available than the state expects.

ALSO:

State is on the hunt for redevelopment money

California cities lose battle with state for property tax funds

Gov. Jerry Brown signs budget that relies on voter-backed tax hikes

-- Chris Megerian in Sacramento

twitter.com/ChrisMegerian

Photo: Gov. Jerry Brown discusses his preliminary budget proposal in January. Credit: Rich Pedroncelli / Associated Press

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