In October 2009, the California Redevelopment Association filed a lawsuit in Sacramento Superior Court challenging these takes as being unconstitutional.  A decision in the case was made on May 4.  The current year payment will have to be made to Sacramento by May 10.  

"Redevelopment funds are critical in stimulating commercial developments, infrastructure improvements, and housing projects that create jobs in La Mirada," says City Manager Thomas E. Robinson.  "The State's raid on these funds to patch over its budget problems is very irresponsible.  These takes of local funds cut into the services we are able to provide to the residents of La Mirada."

In April 2009, the Sacramento Superior Court invalidated a proposed 2008 State raid of redevelopment funds, finding that it violated the State Constitution.  Local redevelopment agencies had been hopeful that the Court would reach a similar conclusion in this case.  The loss of nearly $6 million is expected to have dramatic impacts in La Mirada, which already plans to use a portion of its reserve funds this year to balance its budget due to declining sales and property tax revenues.

Officials with the California Redevelopment Association have indicated that redevelopment activities are responsible for more than $40-billion in economic activity and create more than 300,000 jobs in California.