A battle over $30 million in public funding for the 49ers' new stadium in Santa Clara is flaring up again.  

The dispute arose when a board handling funds from abolished redevelopment agencies voted to give schools $30 million Santa Clara had originally promised the 49ers. The matter wound up in court, and the board cut a deal with the team to share the $30 million with schools.

Now the state Department of Finance says state law bars new contracts that would spend former redevelopment funds.

Interim City Manager Ron Garratt says the decision is confusing, "Well, that means any form of agreement that takes place between the Department of Finance and any former redevelopment agency in California theoretically can’t be approved, which really doesn’t make a whole lot of sense," he said.

State and local officials will meet to discuss the dispute in November.