The California Supreme Court announced today that it will hear oral arguments in San Francisco on California Redevelopment Association v. Matosantos on November 10. The lawsuit challenges the constitutionality of the state's plan to eliminate redevelopment agencies unless they agree to pay $1.7 billion for FY 2011-12 and $400 million in subsequent budget years. 

The initial petition was filed on July 18 by the California Redevelopment Association, the League of California Cities, and the cities of San Jose and Union City. The suit claims that the state's budget plan runs afoul of Proposition 22, which passed last yaer and was designed to protect local funds from state captures.
In August, the Court agreed to hear the case on an expedited basis, in order to reach a decision before Jan. 15, 2012, when the first payments under AB 1x 27 are due.