The Good Guys Win!
Every time the State is not able to balance its own budget, they use funds from local government and redevelopment agencies to fill the gap. Billions in property tax dollars are shifted from your community annually to help balance the budget. The State started this permanent shift in the early 90s. When state budgets are really out of wack, they also steal money from local redevelopment agencies. They've taken several billion dollars out of local agency coffers periodically since 1992. This year, they proposed to take $350 million statewide.
This year's theft would have taken $1.377 million from Manteca's redevelopment agency.
A Sacramento Superior Court judge Thursday told the state it can't take money from city redevelopment agencies. Judge Lloyd Connelly said a provision in the state budget approved in September, which would have required redevelopment agencies statewide to transfer $350 million to the state, is unconstitutional.
More information about the lawsuit is available here on the California Redevelopment Association website.
In his 14-page ruling, Connelly stated that the state's action is unconstitutional because the redevelopment money won't be used in the agency's area. "The funds are distributed without any procedures to assure that the schools and educational programs receiving funds contributed by the city redevelopment agencies are serving students within the redevelopment project areas ...," Connelly stated. Thus, the money will go to projects unrelated to the agencies' projects, he stated.
“While we understand the difficult situation with our state’s budget, taking redevelopment funds is unconstitutional, plain and simple,” said John Shirey, executive director of the California Redevelopment Association. “We repeatedly warned state lawmakers that raiding redevelopment funds to balance the state’s budget violates the Constitution, yet they took these funds anyway.”
While a great victory for all redevelopment agencies, Thursday's ruling, however, isn't likely to be the last word. It is expected that the State Department of Finance will appeal the decision.
This year's theft would have taken $1.377 million from Manteca's redevelopment agency.
A Sacramento Superior Court judge Thursday told the state it can't take money from city redevelopment agencies. Judge Lloyd Connelly said a provision in the state budget approved in September, which would have required redevelopment agencies statewide to transfer $350 million to the state, is unconstitutional.
More information about the lawsuit is available here on the California Redevelopment Association website.
In his 14-page ruling, Connelly stated that the state's action is unconstitutional because the redevelopment money won't be used in the agency's area. "The funds are distributed without any procedures to assure that the schools and educational programs receiving funds contributed by the city redevelopment agencies are serving students within the redevelopment project areas ...," Connelly stated. Thus, the money will go to projects unrelated to the agencies' projects, he stated.
“While we understand the difficult situation with our state’s budget, taking redevelopment funds is unconstitutional, plain and simple,” said John Shirey, executive director of the California Redevelopment Association. “We repeatedly warned state lawmakers that raiding redevelopment funds to balance the state’s budget violates the Constitution, yet they took these funds anyway.”
While a great victory for all redevelopment agencies, Thursday's ruling, however, isn't likely to be the last word. It is expected that the State Department of Finance will appeal the decision.
Labels: Redevelopment
posted by City Manager @ 4:10 AM
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