State forgives debt

Local cities have received a reprieve from California Controller Betty Yee, whose office decided to cancel looming repayments.

Over the past decade, Butte County has overpaid its municipalities to the tune of $6.4 million in vehicle licensing fees (see “Unexpected debt,” Newslines, Jan. 4). Chico’s chunk of the debt totaled just less than $2 million.

Scott Dowell (pictured), the city’s administrative services director, said repaying that amount was “really going to be a hardship.”

Since an original audit came back with a clean report, ultimately the state Controller’s Office waived the repayment.

Chico had originally planned to pay back $400,000 this year. The City Council will decide how to redirect those funds.