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Sunday, October 25, 2009

Editorial: State raid on redevelopment agencies likely unconstitutional - ContraCostaTimes.com


Editorial: State raid on redevelopment agencies likely unconstitutional - ContraCostaTimes.com:

"ONE OF THE MOST egregious elements of last July's state budget agreement was what almost surely is an unconstitutional raid on redevelopment agency funds. The Legislature and governor approved budget bill ABX4-26, which authorized taking $1.7 billion in redevelopment funds for fiscal 2009-10 and another $350 million in fiscal year 2010-11.

This isn't the first time the state has tried to grab local redevelopment funds to help balance its budget. In 2008, the Legislature voted to transfer $350 million in redevelopment revenue to state coffers to help fulfill California's education funding obligations and thus balance last year's budget.

However, last April a Sacramento County Superior Court ruled that the state raid was unconstitutional. The state objected, but dropped its appeal, leaving the court ruling intact."