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Jerry Brown's proposed budget would eliminate redevelopment agencies

January 10, 2011 | 12:30 pm

Gov. Jerry Brown wants to bring an end to billions of dollars in redevelopment subsidies for business, redirecting the funds to local governments to use in funding schools, law enforcement and other "core functions."

Brown's budget plan argues that the redevelopment subsidies, which are meant to be targeted at projects in "blighted" areas, often fail to stimulate economic growth. "There is little evidence that redevelopment projects attract business to the state," the budget plan says. It also notes that redevelopment agencies have failed on many occasions to develop the low-income housing that is required as a condition of the subsidies.

The Brown plan would eliminate the state's redevelopment agencies and redirect the tax revenue they now have at their disposal. Once the agencies are eliminated and their debts are paid off, the state would use the remaining $3 billion available to fund state and local government services.

The plan is likely to meet stiff opposition in the Capitol. A more limited proposal to raid redevelopment funding by former Gov. Gray Davis died in the Legislature.

-- Evan Halper in Sacramento

RELATED:

Interactive: Try your hand at balancing the state budget

Document: "The complete text of Gov. Jerry Brown's proposed budget."

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