Since the beginning of January, Redevelopment Agencies have issued hundreds of millions of dollars in new bonds. But between the volume of bonds going out and the uncertain nature of their future, the borrowing has been fairly expensive. The average yield has been more than 8 and a quarter percent.

With the cost running higher, it reduces the amount of money that Governor Brown’s proposal could squeeze out of eliminating the programs. Originally, the state hoped to capture as much as $1.6 billion for this fiscal year if Redevelopment Agencies were dissolved. In future years, that money would flow back to the local districts.

However, with the spending spree continuing, it remains to be seen how much the state really would profit.

From the Press Enterprise:

Redevelopment agencies have issued at least $770 million worth of tax-allocation bonds since January, taking a bite out of Gov. Jerry Brown’s plan to phase out the agencies.

The borrowing hasn’t been cheap. Of 45 bond sales from mid-January to mid-March – with maturities ranging from three years to 33 – the average yield is 8.28 percent.

Several agencies in Inland Southern California have sold at least $91 million worth of bonds, according to sales data from the state treasurer’s office.

On March 3, the Riverside County Redevelopment Agency sold two sets of $14 million in bonds. One has a yield of 7.33 percent and the other has a yield of 8.58 percent

Read the full article here.