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this is a major thread in the local FIRE fabric being yanked loose and apparently thrown away - much of the new major urban infrastructure has come from Redevelopment funding. The scale ranges from San Francisco's Mission Bay, Bayview Hunter's Point Shipyard and Treasure Island blockbusters to local projects on the scale of mall renewal, commercial center walkways, etc. My own burg's newspaper, often mistaken for an on-base newsletter (non-fatal auto collision injuries are listed as the wounded) baldly stated that "many of the things that have resulted in the high quality of life residents enjoy can in one way or another be attributed to redevelopment". This has hit the local wheeler dealers where they live. About 20% of Redevelopment money goes directly to affordable housing type of projects. If that was all that was cut it would have been locally applauded. This move by the state struck bone. The public/private nexus of wealth just got whacked from above.
Dec. 29 (Bloomberg) -- California Governor Jerry Brown won the right to use more than $1 billion to help fill a budget gap thanks to a ruling by the state supreme court that upheld a law permitting both the elimination of redevelopment agencies and use of their funds and assets.
The ruling today means Brown can eliminate 400 agencies and use the money from them for education, roads and fire departments this year. The decision was a blow for cities that argued they needed money for affordable housing and other projects. Brown, facing a $13 billion budget deficit, said the money was necessary to plug a revenue shortfall.
The California Supreme Court ruled in a lawsuit brought by redevelopment agencies and cities seeking to overturn two laws meant to provide a continuing source of money for the state. The court majority held unconstitutional a statute that allowed the agencies to conduct new business only if they agreed to an make annual payments based on a portion of property tax revenue allocated to them.
The California Redevelopment Association, the League of California Cities and the cities of San Jose and Union City had urged the court to overturn the laws, saying they violate Proposition 22, a ballot measure approved by voters last year that prevents the state from seizing revenue dedicated to local government.
http://www.businessweek.com/news/201...ch-budget.html
Dec. 29 (Bloomberg) -- California Governor Jerry Brown won the right to use more than $1 billion to help fill a budget gap thanks to a ruling by the state supreme court that upheld a law permitting both the elimination of redevelopment agencies and use of their funds and assets.
The ruling today means Brown can eliminate 400 agencies and use the money from them for education, roads and fire departments this year. The decision was a blow for cities that argued they needed money for affordable housing and other projects. Brown, facing a $13 billion budget deficit, said the money was necessary to plug a revenue shortfall.
The California Supreme Court ruled in a lawsuit brought by redevelopment agencies and cities seeking to overturn two laws meant to provide a continuing source of money for the state. The court majority held unconstitutional a statute that allowed the agencies to conduct new business only if they agreed to an make annual payments based on a portion of property tax revenue allocated to them.
The California Redevelopment Association, the League of California Cities and the cities of San Jose and Union City had urged the court to overturn the laws, saying they violate Proposition 22, a ballot measure approved by voters last year that prevents the state from seizing revenue dedicated to local government.
http://www.businessweek.com/news/201...ch-budget.html