Two Counties Sue California Over Withheld Funds

By: Associated Press Email
By: Associated Press Email

SACRAMENTO (AP) - Sacramento and San Diego counties are suing
state Controller John Chiang to try to force him to release
$270 million in social services funding.

Chiang announced last month that he would have to hold up tax
refunds and some other payments for 30 days because of California's
cash shortage brought on by a $42 billion budget deficit.

The counties said Friday that the funding shortfall will prevent
them from operating several state-mandated programs. They include
California's main welfare program, CalWorks and county-run mental
health, adoption, foster care and alcohol and drug programs.

Chiang's spokeswoman, Hallye Jordan, says the controller also is
frustrated by the budget impasse but has to give top priority to
funding schools and paying off state debts.

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