SACRAMENTO-The California Redevelopment Association and Moreno Valley’s Redevelopment Agency filed a lawsuit in Sacramento Superior Court late Thursday seeking to block parts of budget trailer bill Assembly Bill 1389, which takes away $350 million in redevelopment funds, on grounds it is unconstitutional.

AB 1389 was approved in September as part of the much-delayed 2008/09 budget package. The CRA suit claims certain sections “authorize a one-time raid of $350 million in redevelopment funds.”

The lawsuit seeks to “invalidate that aspect of AB 1389 and to prohibit the state from forcing county auditors to divert redevelopment funds to finance state obligations,” the suit states.

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