The dissolution of redevelopment agencies may be the biggest bombshell that Gov. Jerry Brown dropped on the land use community. But it is not the only one. He is also targeting the Williamson Act, Enterprise Zones, and fire safety in order to help close the state's $28 billion deficit. 

Enterprise Zones

Like redevelopment project areas, Enterprise Zones are intended to stoke economic development in disadvantaged areas. However, rather than using tax increment financing and being orchestrated by a public agency, Enterprise Zones simply confer tax credits and other financial incentives on businesses that set up shop within the zones. 

As expected, the budget proposed today by Gov. Jerry Brown calls for the wholesale elimination of redevelopment agencies.  This dramatic move would free up roughly $5 billion in annual tax increments that redevelopment agencies control and would redirect those increments to fund a range of local services. 

The proposal has set off what will likely be an ongoing debate over the value of redevelopment as it has been implemented in the 59 years since California voters approved a constitutional amendment allowing the use of tax increment financing to combat blight. 

For all of the Legislature's fretting this year, the consensus in Sacramento is that among the state's overwhelming crises, land use ranked as a low priority this past legislative session. The legislative session that ended Aug. 30 included relatively few land use bills and, of those, they were of relatively minor import.

The old saying in government is that in order to understand what's going on, you've got to follow the money. In local planning throughout California, that's becoming increasingly easy to do. Local government revenues - property tax, sales tax, development fees, redevelopment funds - are in steep decline.

With yet another $20 billion deficit looming, the State of California government appears to be on the verge of a complete meltdown. Dealing with this situation would be trying under any circumstances, but everything is made more difficult by two things: Proposition 13, and voters' failure to understand the consequences of Proposition 13.