CALIFORNIA BRIEFING / SACRAMENTO
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California’s budget problems grew worse Thursday when the state lost the first round of a court case filed by local redevelopment agencies.
Sacramento Superior Court Judge Lloyd Connelly ruled that state officials may not take the $350 million from the agencies that the governor and lawmakers authorized as part of the budget plan approved in September. The suit was filed by the redevelopment agencies in Moreno Valley and Madera.
Officials at the state Department of Finance said they are reviewing the decision and evaluating their legal options.
-- Evan Halper
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