California state recently filed suit against Orange County for $73.5 million in property taxes that should have been given to the state of California. However, Orange County withheld these property taxes that normally pay for K-12 schools and community colleges because the county believed that the money was rightfully theirs. Additionally, the county is relying on the state to make the schools which are losing funding due to their misappropriations "whole", so that the county does not have to forfeit the money.
While public school may be made whole, the law that provides for them does not include community colleges. Furthermore, the state contends that the county is illegally relying on a provision that is intended to address natural property tax declines, "not from a county's illegal manipulation of its fiscal affairs." The county has yet to respond.