In their latest budget action, the governor and the Legislature approved a plan in July to close a $24 billion deficit, in part by siphoning $138 million from the public transit account to the Department of Developmental Services to pay for transporting developmentally disabled persons to regional centers. The July plan also counted on taking $254 million from public transit to repay transportation bond debt payments.

In addition, the plan counted on shifting $622 million in transit funds to the general fund to pay for the previous year's debt service.

The refusal of the Supreme Court to hear the appeal could push California's precariously balanced budget immediately into the red.

Before losing this lawsuit, the state was already $200 million short.