The Sacramento-based California Redevelopment Association is preparing to sue the state over a "devastating" $2.05 billion in redevelopment funds that state leaders want to be redirected to schools. On Friday, the California State Legislature passed a budget that includes a provision ordering city and county redevelopment agencies to transfer $1.7 billion in property tax revenues in fiscal year 2009/10 and $350 million in 2010/11, said state Legislative Analyst Mac Taylor. The budget was crafted to close a $24 billion to $26 billion hole in the state's finances. The order would siphon at least $20 million away from the Sacramento Housing and Redevelopment Agency, a joint powers authority