New Budget Proposal Permanently Takes From Redevelopment Funds

The California Redevelopment Association (CRA) has reported that the recent budget proposal from the California legislature will require all redevelopment agencies to make a payment to the Educational Revenue Augmentation Fund (ERAF) to help alleviate the $15.2 billion budget deficit. The estimated amount from all redevelopment agencies is $350 million for the fiscal year 2008-2009. According to the CRA, the budget proposal does not include any extensions to time limits within redevelopment plans or repayment to redevelopment agencies. This budget proposal has been approved by the California Assembly and Senate and will be sent to the Governor for his signature. To read the CRA's legislative update, click here. To view CRA's estimated ERAF payment for each redevelopment agency, click here.

Governor Schwarzenegger, however, has threatened to veto the latest budget proposal and negotiations continue between the Governor and Legislative leaders. To read more about the continuing negotiations, click here.