Santa Clara Owes State $279 Million

The City of Santa Clara just received a bill from the State of California -- a big bill.

$279 million is the sum of cash Santa Clara took from its redevelopment agency and spent on other programs, according to the San Jose Mercury News.

And state Controller John Chiang now wants the city to cough it up and use it to pay off its redevelopment agency's debts, the newspaper reported.

Gov. Jerry Brown shut down redevelopment agencies -- local entities that set aside land and kept property taxes -- shortly after taking office. But like other cities, Santa Clara transferred the assets from its redevelopment agency to other projects or departments, the newspaper reported.

It was those "inappropriate property and cash transfers" that Chiang wants to be used to pay off the agency's old debts.

The sum is a "staggering" amount for Santa Clara, the newspaper reported. A special board will decide how to collect on Sept. 23.