Policy & Legislation
Redevelopment Transfer Defeated in Senate
July 01, 2009
Last Thursday, a bi-partisan, two-thirds majority of assemblymembers passed a measure to shift $350 million from redevelopment agencies to schools, thereby saving the state $350 million that it would otherwise have to spend on schools. However, due to opposition by the governor, the Senate defeated the measure on a party-line 23-14 vote.
Governor Schwarzenegger announced that he would veto SB 80 (Budget Committee), along with other budget-related bills, if they reached his desk. The governor wants the legislature to send him all of the bills needed to fill the state's $24 billion budget gap at the same time.
SB 80 would have required a $350 million shift in fiscal year 08-09, which ended yesterday. An earlier version of the bill would have shifted $1.05 billion over three years, beginning in fiscal year 08-09.
No bill language appeared in print, but it was described as the same as previous bills: the $350 million would come from the 80 percent side of redevelopment activities unless those funds are already encumbered or spent. Then the funds could be borrowed from agencies' Low and Moderate Income Housing Fund and repaid in 10 years with interest.
Contact Julie Snyder, 916.447.0503 x102 or .
