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Calif. Appeals Court Bars Transit Fund Raids

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Calif. Appeals Court Bars Transit Fund Raids

SACRAMENTO (CBS 5 / AP) ― A California appeals court has barred state officials from tapping public transit funds for other programs, adding to the difficulty of balancing the state's 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.

He said the administration would appeal to the state Supreme Court and ask the appeals court to stay its decision pending the outcome.

The ruling came on a lawsuit filed by the California Transit Association. It could jeopardize $2.5 billion the state has taken from the fund since 2007 and $952 million the administration is planning to use in the fiscal year that starts Wednesday.

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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