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L.A. would lose $166 million under budget deal, city says

July 21, 2009 | 10:43 am

Los Angeles stands to lose at least $166 million in state funding under the state budget deal reached last night, city officials revealed today.

The sum includes $120 million in property tax revenue and $66 million in gas tax revenue.

Los Angeles uses its share of the gas tax revenue to pay for street repair, and the property tax money goes into the city’s general fund. If Sacramento goes forward with proposal to nab $1.7 billion in community redevelopment funds, Los Angeles would lose an additional $70 million to develop projects in blighted neighborhoods.

“The bottom line is that the state is going to balance its budget on the backs on municipalities,’’ said Councilman Dennis Zine.

Councilman Greig Smith, a member of the budget and finance committee, said the city will likely join statewide lawsuits to block the state from taking both the redevelopment and gas tax funds.

California cities blocked a similar attempt by Sacramento to take the redevelopment money last year.

“Everyone loses right now. The question is, who bears the greatest burden,’’ Smith said.

-- Phil Willon at City Hall