Policy & Legislation
Redevelopment Funds at Risk in Proposed State Budgets
September 03, 2008
With most policy work complete, Capitol staff, lobbyists, and legislators are fully focused on the overdue state budget. The budget crafted by the governor and Democrats has not garnered the necessary two-thirds vote in each house for passage, and Republican legislators are just now drafting their own proposal.
Redevelopment funds are at risk in both versions of the budget. Legislators and the governor appear determined to take some money from redevelopment agencies, so the only questions are how much and from which portion -- the 20% housing set-aside or the other 80%.
The governor's proposal would take roughly $228 million, with the money coming out of the 80%. An agency without any available 80% money could borrow from the 20% set-aside, but must repay the money with interest within 10 years. Republicans want to scoop up an additional $349 million solely from the housing set-aside.
Additionally, the Republican budget takes $401,000 from emergency shelters, an astonishingly callous cut at a time when more and more people are losing their homes to foreclosures and other events.
The Affordable Homes Collaborative, managed by Housing CA, is opposing the Republican proposal and lobbying heavily to protect the housing set-aside and the Emergency Housing and Assistance Program (EHAP).
Besides straight appropriations, the budget also includes so-called "trailer bills." Passed after the budget, trailer bills can become vehicles for last-minute policy changes that are only loosely linked to the budget. Affordable-home advocates are closely monitoring the trailer bills for impacts on housing policy or funding.
Contact Julie Snyder, (916) 447-0503 x 102 or .
