The San Jose Mercury-News is reporting that an appeals court has barred state officials from tapping public transit funds for other programs, which the state was doing to help balance the budget. "Department of Finance spokesman H.D. Palmer said Tuesday's decision by the 3rd District Court of Appeal could force the state to repay about $3.4 billion. That's the amount it has diverted or plans to divert from the Public Transportation Account over three fiscal years." Palmer is not pleased, saying the administration would appeal to the state supreme court and ask the appeals court to stay its decision pending the outcome. The ruling came from a lawsuit filed by the California Transit Association. If ultimately successful, it could take back $2.5 billion the state has taken from the transit fund since 2007 and $952 million the administration is planning to use in the fiscal year that starts today.
· Calif. Appeals Court Bars Transit Raids [Mercury-News]
· Measure R Tax: Arriving Tomorrow! [Curbed LA]