Judge OKs California's shift of funds from redevelopment to schools
By Anthony York/Los Angeles Times
State officials dodged a $2-billion bullet Tuesday when a judge ruled that last year's shift of funds away from redevelopment agencies to pay for schools was legal. In a 26-page ruling, Sacramento County Superior Court Judge Lloyd Connelly said the state was within its rights to move the money. The maneuver saves more than $1.7 billion in the current budget year and $350 million for the 2010-2011 budget year. Legislators have been trying to borrow from and shift various pots of money as part of their continuing effort to balance the state's books, which are more than $18 billion out of whack. The moves have prompted lawsuits, some of which have ended in rulings that the state acted illegally. (more...)