The following is excerpted from the CA Redevelopment Association's Executive Director Update
In the face of a threatened veto by the Governor, the Legislature made changes last Friday to the budget passed a week ago having to do with a new "rainy day" fund and increased income tax withholdings, but left intact a $350 million take of redevelopment funds. The Governor is expected to sign the budget bills tomorrow.
Because the take of redevelopment funds violates Article XVI, Section 16 of the California Constitution, which specifies that tax increment must go to redevelopment agencies, the CRA Board of Directors is considering whether to file a lawsuit against the State. If the Board decides to proceed, local government plaintiffs will be needed to join the suit.
The estimated amount for each redevelopment agency's ERAF shift is posted on the CRA website, www.calredevelop.org, under "Impact of $350 million Take Away."
To gather information for a possible lawsuit CRA needs to hear from agencies that will be adversely impacted by this take of local funds. We need specific details of projects that will be eliminated or critically diminished because of the cuts. In addition to a description of the project, details should include the costs, the purpose of the project, and financing and timing issues. Please contact John Shirey at email@example.com or (916) 448-8760, if your agency is interested in joining a possible lawsuit as a plaintiff. (Costs of the lawsuit will be paid by CRA.) Please send information about the impacts to Lillian Henegar at firstname.lastname@example.org or (916) 448-8760.
Agencies considering filing a lawsuit on their own are asked not do so without first contacting CRA.
Follow the link below to a full summary of ERAF Shift Provisions