California Seizure of Redevelopment Funds Blocked by State Court
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California’s plan to use $1.7 billion from redevelopment agencies for the state budget was put on hold by the California Supreme Court.
The San Francisco-based court said yesterday that two laws that divert the funds can’t be enforced except for provisions that preclude redevelopment agencies from incurring new debt, transferring assets and entering new contracts, according to an e-mailed statement from the court. A final decision on the laws will be made before Jan. 15, when the funds diversion was scheduled to begin, the court said in an order.