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Redevelopment Agencies Dealt Blow

California acted within its legal boundaries when it decided to eliminate over 400 redevelopment agencies.

That was the ruling this morning by the state Supreme Court. It is considered a political victory for Governor Jerry Brown, who has released a statement reading, “Today’s ruling by the California Supreme Court validates a key component of the state budget and guarantees more than a billion dollars of ongoing funding for schools and public safety.”

However, it is a blow to many cities and counties. Sonora City Administrator Tim Miller says the city receives around $450,000 a year in redevelopment funding. “It is disappointing, and we’ll have to make some adjustments,” says Miller. He adds that more information will be learned in the coming weeks.

The elimination of state redevelopment agencies is estimated to save the state $1.4 billion during the current fiscal year, and $400 million in future years.

The Supreme Court did however rule that lawmakers overstepped their bounds by allowing some agencies to continue if they agree to share a portion of their property tax dollars with the state.