Posted on 05/04/2010 11:35:04 AM PDT by SmithL
A Sacramento Superior Court judge ruled Tuesday that California can take $2 billion from local redevelopment agencies for state budget relief, avoiding for now a pitfall that had threatened to exacerbate the state deficit.
California redevelopment agencies are likely to appeal the decision. But state leaders breathed a sigh of relief after Judge Lloyd G. Connelly, a former assemblyman, upheld their 2009 budget plan to reduce the state's burden by using redevelopment funds to pay for local education obligations.
(Excerpt) Read more at sacbee.com ...
It would have been wasted anyway, if it had remained in the various Redevelopment Agencies, most usually via city-built venues that people don’t go to, or “low income housing” that nobody has a “right” to.
They're a cesspool of real estate racketeering and corruption in construction projects.
The state is now robbing the cities.
Sooner or later there won’t be anything left to steal or borrow.
Other people’s money...
Great, so our infrastructure decays all the more because Sacramento’s politicians are willing to steal our kids lunch money (figuratively) rather than reign in their unquenchable thirst for funds to support their liberal programs.
California is bleeding to death from thousands of self inflicted cuts. This transfusion of “new” money may prolong the end, but unless something is done about to stop the bleeding (the out of control spending) the state will die.
As I have noted before, lack of money is not the problem in California, it is the out of control spending.
You got it wrong. Since when does a conservative advocate doing away with local control. You might not like what your local city council via its redevelopment agency is doing, but at least at the local level you have a fighting chance to correct the situation.
This take from the cities simply puts more money in Sacramento’s hands to spend - unless you think they will use it responsibly to reduce the deficit?
You are corect that a side benefit will be to reduce the amount of money that cities are required to spend on low income housing using redevelopment agency funds. The smart cities will use these funds to send to the state.
In case you are not aware, that low income housing is a state requirement imposed on cities out of Sacramento.
A lot of money or redevelopment was raised by bonds. Be warned those will be the first to default if cities go broke(they are now).
You got it right
The situation will not be helped by the state taking the redevelopment funds.
As for redevelopment agencies going out to bond for projects, as long as they did not borrow 100 percent of their bonding capacity, they should be OK. That of course would have to include accounting for the recent drastic downturn in the RDA component of property tax revenues.
It is not the bonding to carry out redevelopment that is the problem. If there is a problem at a local level due to bonding, it was borrowing irresponsibly and not taking into account the ability to repay the bonds in the event of reduced revenue. It is irresponsible financial management that would be the problem - although there is a case to be made that any borrowing is not good.
Thank you. And you got it right with your pseudonym.
They are stealing earmarked money to pay the checks of unionized workers/retirees, welfare and social services.
It is down the rabbit hole spending...nothing to create wealth, just whittle away at this money, which, will be done soon.
“Local education obligations.” Gee...I wonder what THAT means.
“California can use $2 billion in local money to balance budget, judge says”
Taxation is theft, and there is no honor among thieves.
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