LOS ANGELES, CA - JULY 22: A crane towers over the Hollywood and Vine project as Los Angeles Mayor Antonio Villaraigosa wipes his brow after a rooftop press conference with the Community Redevelopment Agency of the City of Los Angeles (CRA/LA) to denounce the state Legislature's plan to take $1.7 billion from redevelopment agencies statewide to close the budget deficit on July 22, 2009 in the Hollywood section of Los Angeles, California. Under the new budget deal, Gov. Arnold Schwarzenegger proposes to take money from local governments which would be expected to take out loans to cover their losses. Local governments are gearing up to take legal action to prevent the state from diverting $4.3 billion from their budgets for the $26.3 billion state budget deficit. Supervisors in Los Angeles and Alameda counties have voted to sue the state. Other groups planning legal action include the California Redevelopment Association, the California State Association of Counties and the California State Association of Counties.