Governor Proposes Permanent Take From Redevelopment Funds To Close Budget Deficit

The California Redevelopment Association (CRA) has issued a Legislative Alert to its members that the Governor is proposing to permanently take redevelopment funds to help close the existing state budget deficit. CRA has not reviewed any formal budget proposal, but understands the estimated take from redevelopment funds is $200 million statewide, or approximately 4.385% of gross tax increment from each redevelopment agency in the state. CRA has learned that the permanent take will be structured as an increased pass-through payment possibly to certain taxing entities that receive state funds. To view the CRA Legislative Alert, click here.

CRA has also calculated the estimated loss to each redevelopment agency using 2006-2007 Fiscal Year data. To view CRA's estimated loss to redevelopment agencies, click here.