Two pieces of legislation were passed along a mostly-partisan line. The first bill abolished the current system, which was created in the 1950s. The second bill would create the replacement agencies, which could continue operating if they made voluntary payments to schools and special districts. But with funding tight, hundreds of redevelopment agencies won’t be able to come up with the money.
In Oakland, the voluntary pass-throughs would work out to roughly $41 million.
From the Press-Telegram:
Gov. Jerry Brown has been pushing since January to abolish California’s redevelopment agencies, and last week’s flurry of budget activity pushed them one step closer to the brink.
What’s beyond that brink? Progress, unemployment or a lawsuit against the state, depending on whom you ask. In the meantime, the uncertainty is disrupting work on development projects throughout the state.
The Legislature on Wednesday approved a state budget backed by Democrats. While the main bills were vetoed swiftly by Brown, two bills that would eliminate some 400 redevelopment agencies and allow creation of new agencies were passed but not transmitted to the governor.
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