Perez v. City of San Jose

This appeal by plaintiff from a judgment in favor of defendants in a taxpayer’s suit raises the question of whether a municipality may use tax funds for the improvement, jointly with the state, of a state highway within the municipality’s boundaries.

Facts

The appeal is on an engrossed settled statement. The Alameda in San Jose is a part of State Highway Route No. 2. Pursuant to a prior cooperative agreement between the city and the state, the city promulgated plans and specifications for a central dividing strip 6 feet in width, electrical traffic signals, and a central highway lighting…