Legislative Elimination of Redevelopment Agencies
As part of its 2011 – 2012 budget proposal, the California Governor’s Office proposed permanently shutting down local redevelopment agencies to free up $1.7 billion of tax increments to apply to the State’s budget deficit. The monies were slated to help fund schools, public safety and transit districts. On June 28, 2011, Governor Jerry Brown signed AB1X26 (the “Dissolution Bill”) and AB1X27 (the “Pay for Continuation Bill”) into law. The Dissolution Bill would permanently eliminate redevelopment agencies by October 1, 2011. The Pay for Continuation Bill allows redevelopment agencies to continue their existence and operation if the city or county that created the redevelopment agency commits to making annual payments to special funds administered by the county auditor controller by November 1, 2011.
In response to the passage of the Dissolution Bill and the Pay for Continuation Bill (the “Bills”), on July 15, 2011, the California Redevelopment Association, League of California Cities, City of Union City and the City of San Jose (collectively, “CRA”) filed a Petition for Writ of Mandate to the California Supreme Court challenging the Legislature’s adoption of the Bills and seeking an immediate stay of the Bills pending the outcome of the litigation.