State Views Redevelopment Funds As Piggybank

"California’s redevelopment agencies are pondering their next step after a court ruling that forced them to give $2.05 billion to the state in early May. The state’s redevelopment association plans to appeal the ruling by Sacramento County Superior Court Judge Lloyd Connelly – but most of them had to write big checks back to their county treasurer on May 10 to comply with the ruling."

"The Third District Court of Appeals ruled against the California Redevelopment Association's request for a temporary stay on making a potentially devastating transfer of would-be redevelopment intended to ease the state's $20.7 billion budget deficit. California's redevelopment agencies were forced to hand over a collective $1.7 billion on May 10, with another payment of just over $300 million slated for next year."

"What Judge Connelly ruled is that the legislature can define redevelopment to be whatever it wants to be, and under that kind of sweeping nod to the legislature, what it could mean is that the legislature starts using redevelopment for any purpose that it wants," said Shirey. "Every year will be open season on redevelopment by the legislature and the governor, and redevelopment agencies will never have any ability to do long-term planning."