California High Court To Rule On Redevelopment Money Fight

SACRAMENTO, Calif. (AP) — The California Supreme Court is releasing its decision on the state's right to eliminate community redevelopment agencies and divert billions in tax dollars to schools and other local services.

The state's high court is expected to issue its ruling Thursday morning, after the justices heard arguments last month.

Gov. Jerry Brown and state lawmakers say redevelopment agencies were created by the Legislature, giving the state the authority to dissolve them and impose new requirements if they want to continue operating.

Cities and redevelopment agencies say that's illegal because voters banned raids on local government funding in 2010.

The state is counting on $1.7 billion from the agencies in this year's budget and $400 million a year thereafter. A nonpartisan analyst has since pegged this year's savings at $1.4 billion.