State Supreme Court to rule on redevelopment agencies

December 28, 2011 7:30:03 PM PST
The California Supreme Court will rule on Thursday on whether local redevelopment agencies can be forced to turn over half their revenues to the state.

Redevelopment money is property tax revenue, which is devoted to making improvements in a specific area, such as Downtown San Jose. But Sacramento wants the money to help balance the budget.

Redevelopment agencies have been ordered to dissolve or turn over a large portion of their revenues to pay for local schools.

The California Supreme Court has sent mixed signals on how it might rule, but there are $1.7 billion at stake in this decision.