Budget Deal Hits Redevelopment Hard . . .
Late Sunday, a budget compromise came together among the four legislative leaders. Terms of the compromise are still being drafted, and we are still waiting final details. Here is what we know so far.

Redevelopment agencies will be required to make an ERAF shift of $350 million for FY 2008-09, which amounts to approximately a 7.7% cut to each agency! This take-away would be a one-year hit with no repayment and no extensions. We will provide you with the details of the take-away and post the language once it becomes available. In addition, we will post on our website the impact on each agency once we know the "take-away" formula.

On the bright side, the deal does not include Prop 1A borrowing or Prop 42 borrowing.

Today, floor sessions have been scheduled in the Assembly and Senate at 4 p.m. Word from the Capitol is the votes are there to approve. There will likely be lengthy caucus meetings to brief members of all aspects of the budget so the actual debate and vote may not happen till later this evening. In addition, we have word that there are approximately 26 budget trailer bills, which implement various programs funded by the budget.

We are told that the Senate wants to have all votes on budget and trailer bills complete tonight - so it is likely to be a late night.

Contact your Legislators Now
It's not too late for City and County officials to contact your legislators about how taking redevelopment funds will hurt communities and the fact that State takes of tax increment violate the State Constitution.

Remind your legislators that taking redevelopment funds is "penny-wise and pound-foolish," because redevelopment dollars leverage private sector dollars, which, in turn, put people to work and generate more activity in the overall economy-both of which produce more state and local tax dollars.

Remind your legislators that taking redevelopment funds are unconstitutional. Article XVI, Section 16 of the California Constitution specifies that redevelopment tax increment must go to redevelopment agencies. Relying on redevelopment funds to balance the State budget that may be later overturned by a court only continues the chronic imbalance in the State budget.

Finally, remind your legislators that the State budget should be balanced with State revenues and/or expenditure reductions, and not with local government revenues.

Contact your legislators now!

Upcoming Events (Click here for more info)
Introduction to Redevelopment Seminar/Workshop
Crowne Plaza Anaheim Resort (in Garden Grove)
September 24-25, 2008

Transforming Obsolete Strip Developments into Community Assets
Hilton Concord Hotel
October 8, 2008

Affordable Housing Conference/Workshop
Doubletree Hotel, Sacramento
October 29-30, 2008

Introduction to Redevelopment Seminar/Workshop
Hilton Concord
February 11-12, 2009

Annual Conference & EXPO
Monterey Conference Center
April 1-3, 2009