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California Redevelopment Association v. Matosantos

Supreme Court of California
267 P.3d 580 (2011)


In the summer of 2011, the California legislature passed two measures to stabilize school funding by reducing the diversion of property-tax revenues from school districts to community-redevelopment agencies that had been established by the legislature. The first measure barred redevelopment agencies from engaging in new business and provided for the windup and dissolution of such agencies. The second measure offered a way for redevelopment agencies to continue operations if the agencies made payments into funds that benefitted school districts. The California Redevelopment Association, the League of California Cities, and other affected parties (plaintiffs) filed suit against Ana Matosantos (defendant), the director of finance of California, seeking extraordinary writ relief on the ground that the two measures violated California’s state constitution. The plaintiffs argued that the measures violated California’s Proposition 22, which had amended the state constitution to limit the state’s ability to require payments from redevelopment agencies for the state’s benefit. Matosantos argued that the measures were valid, because the payments were technically voluntary.

Rule of Law


Holding and Reasoning (Werdegar, J.)

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