This really goes back to 1994 when the county was struggling financially following its bankruptcy filing and had been given a greater share of state vehicle license fees. But last year the money was redirected. OC lawmakers tried without success to replace the funding and has instead withheld a share of property taxes that normally pays for K-12 schools and community colleges. The suit, filed in OC Superior Court, says that the diversion is unconstitutional. From Capitol Alert:
The state Department of Finance along with California Community Colleges Chancellor Jack Scott filed suit Thursday in Orange County Superior Court, alleging that the county has taken "the extraordinary step of flouting the law and illegally redirecting property tax revenue payments from schools and community colleges to the County's own general fund." The state wants the court to order the county to pay property taxes to schools.