In advance of the Feb. 9 Senate Governance and Fi­nance Committee hearing on the fate of redevelopment, the Legislative Analyst's Office has produced an extensive briefing paper encouraging senators to ask some hard questions about Gov. Jerry Brown's proposal to eliminate redevelopment and redistribute its tax increment. 

The meeting agenda [.doc] includes time for speakers from the LAO as well as from organizations such as the California Redevelopment Assoication, the League of California Cities, and the California Budget Project. Representatives of the League and CRA have already said that they will encourage legislators to oppose the governor's plan.

The briefing paper encourages senators to consider six broad categories of concern: 

1. Dissolving Redevelopment Agencies. What will happen to agencies' contracts and outstanding bonds? Does Proposition 22 prevent dissolution without legislation? What will the 'successor agencies' be?

2. Budget-Year Effects. Do RDA's debt obligations amount to more or less than the Department of Finance's estimate of $2.2 billion? How will the redistribution of the tax increment work? And can it be allocated to schools and trial courts, as the governor proposes? 

3. Out-Year Effects. After the intial windfall, what will be the long-term fiscal effects of eliminating redevelopment? 

4. Affordable Housing. Will the 20% set-aside be dissolved along with the rest of redevelopment? Can local agencies successfuly inheirit RDAs' affordable housing programs? 

5.  Measuring Outcomes. How will the state determine if the elimnation of redevelopment created a net gain for proposed beneficiaries? 

6. Economic Development Alternatives. How can the state and localities promote local economic development in the absence of redevelopment? 

To read the entire briefing paper and all of the LAO's questions, please click here [.doc]. 


Senate Governance and Fi­nance Committee 
"Restructuring Redevelopment: Reviewing the Governor's Budget Proposal"
9:45 a.m. to 12:00 noon
Wednesday, February 9, 2011
State Capitol, Room 112