SAN FRANCISCO - California redevelopment agencies plan to sue to block a $2.05 billion revenue grab that state lawmakers approved Friday as part of a $23.1 billion budget-balancing deal.

The deal requires redevelopment agencies to send to the state $1.7 billion in 2009-10 and $350 million the following year. This year's take equals about 30% of the agencies' property tax collections.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.