The city of San Jose had to write a $62 million check Monday. They sent out a pdf to prove it.
Sacramento Superior Court Judge Lloyd Connelly ordered San Jose to hand the money over in a ruling last week . He backed what San Jose's mayor calls a raiding of city coffers by state lawmakers. ABX4-26 required cities to fork over $2.5 billion in redevelopment funds as part of the 2009-2010 budget.
San Jose claims instead of paying for key economic projects, the $62,247,530 will be used to help pay the state’s obligations.
San Jose Mayor Chuck Reed said it comes at the worst possible time.
"Once again, Sacramento’s budget failures have serious consequences for the residents and businesses of San Jose and the entire State of California. Redevelopment funding provides critical tools to rebuild our economy, create jobs, and build affordable housing – exactly the kinds of investments we should be making in this recession. Instead, we’ve had to cancel and delay projects that would get our economy moving again and put people back to work," said Reed.
While the check will be deposited soon, the issue is still in legal play. The California Redevelopment Association says it will appeal Judge Connelly's ruling.
