A lawsuit claims the county used the wrong formula to divide money
San Diego officials say they hope to get a windfall of up to $40 million sometime this year from a lawsuit that challenges how the county divides up property tax collected by the city’s former redevelopment agency.
Once those debts and obligations are covered, any money left over is divided up by counties across the state using one of two distinct formulas. Counties using the formula more favorable to cities would be vindicated and would be allowed to continue with that practice. Counties using the formula less favorable to cities would have to shift to the other approach.
But, the budget analyst notes, even a favorable ruling this year won’t guarantee the payout comes immediately. The case could be appealed to the state Supreme Court.
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