The State Raids Your Neighborhood

by Tony Chavira

Well, what happens when we run out of money? (bold emphases are mine)

Judge upholds state raid on redevelopment funds; San Jose to pay $75 million

SACRAMENTO — A judge on Tuesday upheld Gov. Arnold Schwarzenegger's right to raid local redevelopment funds to help close California's budget deficit. But the ruling is unlikely to stave off deep cuts to education, social services and health care for children and the poor.

Sacramento County Superior Court Judge Lloyd Connelly ruled that the state can transfer more than $2 billion from local redevelopment funds to school operations. Local governments objected to diverting the money, which generally is used for public works projects and to rehabilitate downtowns.

"Once again, Sacramento's budget failures have serious consequences for San Jose and the entire state," Mayor Chuck Reed said in a statement. "We've had to cancel and delay projects that would get our economy moving again."

Naturally, San Jose's not the only one suffering.  $313.4 million from Los Angeles County CRA funds are going to be siphoned off to underfunded state programs, and $21 million's going to be taken from the city of Santa Monica alone.  Brutal?  You betcha.  It means that essentially all of the funds meant to go to rehabilitating the areas around the upcoming Exposition Line will be seized by the state.  Not a great way to have a grand opening for a light rail system, I know.

What I don't quite understand is this: where is the Federal government's immediate commitment for redevelopment funds for the 30-10 plan to cram all 30 years of the Long-Range Transportation Plan in Los Angeles into just 10 years?  Shouldn't this cash somehow facilitate the movement of this project?  Yay?  Nay?

Someone want to weigh in out there?

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