Redevelopment agency officials throughout California are moving rapidly to prevent a threatened takeover by the state (to reduce deficit) by signing deals on projects potentially prematurely. LA just turned $1 billion in 275 projects to the city.
"To block the governor, some cities have launched a mad dash to lock up future revenue - in effect laying claim to the money Brown wants. They are quickly approving deals with their redevelopment agencies to move forward with a long list of projects, even those described in the vaguest of terms.
Brown predicted that the move would save the state $1.7 billion in the next fiscal year and send much more money back to school districts and counties in years to come. The redevelopment agencies take in about $5 billion each year."
However, as the Sacramento Bee notes, the legislature is no hurry to act. Perhaps they should - the Bee's editorial, "Redevelopment rush shows why action is vital" urges legislators to act upon the "Legislative Analyst's Office recommendation to pass emergency legislation that would prohibit the 425 redevelopment agencies from increasing their debt and from creating or extending redevelopment project areas."
Thanks to The Roundup
FULL STORY: California cities race to shield funds from state
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