One of the first targets of state officials desperate for money to close the budget deficit were California’s redevelopment agencies. In 2008, the state took $350 million from them, and this year it plans to take more than $2 billion. But the agencies are fighting back…and winning. A State Superior Court judge ruled that the confiscation of funds in 2008 was unconstitutional because the money was earmarked specifically for development projects. Last week the state dropped its appeal, with repercussions for the 2009 court case that the agencies have initiated.
The ruling could have enormous repercussions for San Jose, where the RDA forfeited $13 million to the state in 2008. The 2009 raid on development funds would have lopped off another $75 million, and put an end to major development projects, including the expansion of the McEnery Convention Center.
Last Thursday, SanJose.com reported that because of the raids almost one-quarter of the RDA’s staff would be laid off.
Still, the RDA’s money is not safe yet. H.D. Palmer, a spokesman for the state’s Finance Department, said that “We’ve crafted this second transfer in a manner that addresses the concerns raised by the trial court.” California is in desperate need of the funds to cover its $24 billion deficit, and they plan to fight much harder this time.
As Mayor Chuck Reed pointed out, the current victory in appellate court may be a “fleeting victory,” given the state’s needs. The RDAs have until May to find out if that’s the case, because that’s when the first payment to the state becomes due.
Read More at the Mercury News.
Oh this is such wonderful news!
It lifts my heart to know that 2 gangs of crooks that have been regularly ripping us off are squabbling over all the money they’ve stolen. First one of the gangs was winning. Now the other may score a reversal. Whoop Dee.
Are we supposed to be happy that our local RDA will have plenty of money but our State will be even more broke? Wasn’t it just a few days ago that we were instructed to be concerned for California because State Parks would have to close? Should we be glad that we might get the A’s but Henry Coe will shut it’s gates?
My main question is this;
Just how stupid is the person who wrote this story?
It’s too bad that money couldn’t be taken from the RDA and given to the city to preserve basic services.
Actually the RDA has paid for many basic services like $150 million for parks and $40 million for sewers and more. Come learn more Saturday 10:30AM at the Willow Glen library.