Alert October 19, 2011

California Budget Faces Mounting Legal Challenges

At least three different groups recently have filed lawsuits challenging various aspects of the current California budget for fiscal year 2011-12. 

  • The League of California Cities has filed a suit challenging the constitutionality of the State’s diversion of $130 million in vehicle license fees from cities and counties to pay certain State expenditures. 
  • A group headed by United Cerebral Palsy of San Diego filed a suit claiming the State failed to follow proper procedure when it cut funding for certain programs that benefit the disabled.
  • The California School Boards Association, the Association of California School Administrators, and several school districts filed a suit claiming the State violated its minimum funding commitment to K-12 education by more than $2 billion in the current budget.

These litigants join the ranks of the California Redevelopment Association and the League of California Cities; those groups previously filed a lawsuit challenging the constitutionality of the redevelopment bills ABX1 26 and ABX1 27 that accompanied the State’s 2011-12 budget package. The California Supreme Court has agreed to hear the case, and a decision is expected in January 2012.  Click here to read Goodwin Procter’s previous article regarding that case.