One of the budget trailer bills has given the state new teeth in enforcing its redevelopment clawback from local governments. Under the new rules, the state can withhold sales and property taxes to non-compliant cities and counties.
The new rule applies only to cities or counties that are not fulfilling their redevelopment obligations through their redevelopment successor agencies. In those situations, the state will withhold the largest sector of local government financing, money that could go to more than just redevelopment obligation, but also from areas such as police or fire services. In addition to the withholding of payments of revenues, the state could seek a fine of $10,000 per day of noncompliance.
The money grab, however, may reopen the issue to constitutional and legal challenges.
From the Press Enterprise:
California lawmakers approved legislation that would give the state new powers to compel local agencies to hand over money that once paid for redevelopment, prompting warnings from city officials of a likely legal challenge.
The measure was part of a 27-bill package approved Wednesday, June 27, to finalize the state’s budget for the fiscal year that begins July 1. Gov. Jerry Brown signed the main budget bill late Wednesday, and is expected to act on the other bills in the coming days. His office helped crafted the redevelopment measure.
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