Thursday, October 20, 2011

San Jose Mercury News: State Supreme Court to hear redevelopment lawsuit

California Supreme Court sets date for oral arguments in redevelopment lawsuit
By Tracy Seipel
The San Jose Mercury News
Posted: 10/20/2011 06:18:16 AM PDT

Oral arguments will be heard on Nov. 10 on a lawsuit that challenges the constitutionality of the state's plan to eliminate California's 398 active redevelopment agencies unless they agree to pay $1.7 billion for fiscal year 2011-12 and $400 million in subsequent years.

The California Redevelopment Association, along with the League of California Cities and the cities of San Jose and Union City, filed the initial petition on July 18. The central claim in the lawsuit: bills signed by Gov. Jerry Brown in late June as part of the state budget are unconstitutional.

The lawsuit claims the bills violated Proposition 1A, adopted in 2004 to limit the state's use of local funds for its own purposes, and also Proposition 22, passed by voters last fall to further safeguard local revenues against a state raid and to protect redevelopment funds.

In August, the court agreed to hear the case, California Redevelopment Association v. Matosantos, on an expedited basis in order to reach a decision before Jan. 15, 2012, when the first payments under the legislation would be due.

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