The lawsuit challenges the constitutionality of the state's plan to eliminate redevelopment agencies unless they agree to pay $1.7 billion for FY 2011-12 and $400 million in subsequent budget years. 

The initial petition, filed on July 18 by the California Redevelopment Association (CRA), the League, and the cities of San Jose and Union City, argues that AB 1x 26 and AB 1x 27 violate the California State Constitution, including Proposition 22. Prop. 22 was passed by 61 percent of California voters in November 2010 to prevent state raids on local governments, including redevelopment agencies.

Thursday’s hearing will be streamed on the California Channel website. 

For more information on this case, please visit CRA's website.