Judge Rejects State's Effort to Stop Transfer of Port Funds

A Los Angeles Superior Court judge has rejected a state effort to block the transfer of more than $40 million from the Port of Los Angeles to the city's general fund.

City officials contend the port owes about $80 million in back fees for municipal services performed on port property since 1977, and insist they need the money to balance the city budget. But the State Lands Commission, a panel that oversees California trust property, including the San Pedro harbor, argues that state law forbids the use of port money for anything other than commercial and navigational expenses.

Although the state panel has sued over the issue, the city transferred $40 million from the port, and the state panel had sought a court injunction to bar any more payments. Judge Victor E. Chavez rejected the state's motion last week, and the Harbor Commission is expected to approve another transfer at an upcoming meeting.