Cities dispute redevelopment money sought by state

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(AP) – Gov. Jerry Brown’s finance department says 27 local governments have failed to pay or have underpaid the state after the governor tried to sweep up billions of dollars from community redevelopment agencies that were eliminated this year.

Yet some cities are disputing the bill from the administration, saying it is using unreasonable accounting methods. City officials say forcing payments to the state could trigger bond defaults.

Brown’s Department of Finance claims local governments owe the state a total of $122 million as part of the elimination of redevelopment agencies to help close California’s budget deficit.

The state has power to take the money from cities, but officials say they are trying to work out the differences first.

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