California redevelopment agencies expect a court to rule on the constitutionality of a $2.05 billion state raid on redevelopment revenue before a looming deadline for first payments by the agencies.
The Legislature and Gov. Arnold Schwarzenegger last year decided to take RDA tax revenue to help balance the budget. The first $1.7 billion payment is due to the state by May 10.
The California Redevelopment Association sued the state to block the revenue grab, saying the new law is unconstitutional because the state constitution specifically protects redevelopment funds.
In 2008, a court ruled that a similar budget statute was unconstitutional, but lawmakers changed the law’s language to direct the revenues back to local schools in the redevelopment districts — in place of general fund dollars — in hopes that would pass constitutional muster.
The CRA this week told members in an e-mail update that it expects a ruling from Sacramento Superior Court Judge Lloyd Connelly on or before May 4 and hopes the judge will issue an injunction suspending implementation of the revenue transfer.
“Agencies should be prepared to make the payment, but wait for further word from [the association] before sending it,” executive director John Shirey said in his e-mail.
