DALLAS - Just days after the Arizona Legislature bridged a $1.6 billion shortfall, the state Supreme Court punched a new $30 million hole in the budget, overturning the state's decision to levy budget-balancing payments from local governments.

In its ruling Tuesday, the court said that the state's requirement of "contributions" from local governments to balance the budget was unconstitutional because it violates laws for how state revenue can be appropriated. The suit challenging the payments was filed by the League of Arizona Cities and Towns.

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