State Bills Cities for Millions

A squabble over redevelopment dollars pits cities versus the state.

By Chris Roberts
|  Wednesday, Jul 25, 2012  |  Updated 6:11 PM PDT
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State Bills Cities for Millions

Gene Cubbison

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The state of California has sent past-due bills to multiple cities for redevelopment agency cash -- and some cities are holding onto the dough.

Cities like El Cerrito are refusing to send the money back to Sacramento, and in return, state officials are threatening to withhold sales tax revenue that cities use to pay for police, firefighters, and other services, according to the San Francisco Chronicle.
 
The state sent a $1.7 million bill to El Cerrito on July 9, demanding payment within three days. El Cerrito refused, -- and went one step further and sued the state, the newspaper reported. 
 
Redevelopment agencies were abolished last year as part of the part to solve California's chronic budget deficit, the newspaper reported. That cash pays for schools -- but it also pays for schools via the state's general fund.
 
Some cities, like Richmond, have paid up. Richmond sent $2.1 million to the state, the newspaper reported.

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