This revelation, which came from a memo sent to a Republican Assemblywoman, is another wrinkle in Governor Brown’s plan to eliminate the redevelopment agencies, and use their funding as a way to plug the state’s funding gap.
However, the news must come as a relief to the cities and counties across the state that rely upon redevelopment to create jobs, just as it could be upsetting to teachers and schools that were hoping that the end of redevelopment could increase their funding in this and future years.
From the Sacramento Bee:
The Legislature’s lawyers believe Gov. Jerry Brown’s plan to eliminate redevelopment agencies is unconstitutional because the state cannot reimburse itself with local property taxes.
In a recent memo to Republican Assemblywoman Diane Harkey, the Legislative Counsel Bureau questioned whether Brown could legally take $1.7 billion in redevelopment money to help balance the remaining $15.4 billion state deficit.
The opinion casts more doubt on a controversial aspect of Brown’s budget that remains stalled in the Legislature. Under heavy lobbying from the cities and developers who use redevelopment, nearly all Republican lawmakers oppose Brown’s plan.
Read the full article here.