Court OKs Elimination of Redevelopment Agencies

The California Supreme Court Thursday upheld a new law that will abolish community redevelopment agencies.

However, the state's high court also struck down a companion statute that allowed local governments to keep the agencies alive by making payments to the state.

Redevelopment proponents argued that voter-passed Proposition 22, which bars the state from seizing local tax money, invalidated both laws. Redevelopment agencies are funded by the increase in tax revenue created by projects in their areas.

Supporters of the laws passed by the Legislature earlier this year, including Gov. Jerry Brown, say the money is better used to fund schools and other municipal functions during tight budgetary times. They cite a state analysts report that shows the cost of redevelopment growing without any tangible economic benefit to the state.

Since the court ruling aborted the plan to allow local governments to buy back into redevelopment, the agencies will be phased out when their currently contracted projects are completed.

Poway's legislative administrator Eric Heidemann said city leaders are assessing the court ruling. Leaders will also likely discuss the ruling at Tuesday's City Council meeting.

-City News Service