The City Council of Modesto passed a resolution in opposition to Governor Jerry Brown’s proposal to abolish Redevelopment Agencies in California.
As part of the 2011-2012 budget proposal, Brown has proposed to terminate 400 redevelopment agencies throughout the state. The resolution states that 61% of voters elected to stop State raids of local government funds back in November 2010.
This is yet another example of decisions that will yield small financial benefits to the State, but will destroy local economic development. According to the State Controller’s Office there will be zero savings to the State for shutting down these Redevelopment Agencies.
Redevelopment activities support 304,000 jobs annually, including 170,600 construction jobs. In dollars this equals $40 billion in general goods and services along with generating $2 billion in State and local taxes per year.
Shutting down these agencies is a violation of State and Federal constitutional provisions.
Steve Qualls, League of California Cities spoke in opposition to the Administration’s Proposal to Abolish Redevelopment Agencies in this video.