CRA is no more thanks to California Supreme Court

 Will the "Valley Greuel" bail out soon to be defunct CRA LA CEO Chris Essel?

No more need for the community outreach skills of CASA 0101.

The California Supreme Court put the final silver nail into the coffin of California's assorted redevelopment agencies today, upholding Governor Jerry Brown desires to use CRA money to offset budget cuts. In addition, the California High Court also slap down the law that kept alive CRA's that shared a portion of their proceeds with the state. 

As Ron Kaye notes, these are the two key paragraphs from today's court decision.

"Assembly Bill 1X 26, the dissolution measure, is a proper exercise of the legislative power vested in the Legislature by the state Constitution.  That power includes the authority to create entities, such as redevelopment agencies, to carry out the state's ends and the corollary power to dissolve those same entities when the Legislature deems it necessary and proper.  Proposition 22, while it amended the state Constitution to impose new limits on the Legislature's fiscal powers, neither explicitly nor implicitly rescinded the Legislature's power to dissolve redevelopment agencies.  Nor does article XVI, section 16 of the state Constitution, which authorizes the allocation of property tax revenues to redevelopment agencies, impair that power." 

"A different conclusion is required with respect to Assembly Bill 1X 27, the measure conditioning further redevelopment agency operations on additional payments by an agency's community sponsors to state funds benefiting schools and special districts.  Proposition 22 (specifically Cal. Const., art. XIII, § 25.5, subd. (a)(7)) expressly forbids the Legislature from requiring such payments.  Matosantos's argument that the payments are valid because technically voluntary cannot be reconciled with the fact that the payments are a requirement of continued operation.  Because the flawed provisions of Assembly Bill 1X 27 are not severable from other parts of that measure, the measure is invalid in its entirety."

Now for CRA LA, the major speculation is what recourse the State of California will have to repatriate close to a $1 billion that the agency transfer to the City of Los Angeles in anticipation of this ruling? Look forward to a legal slugfest over the control of this money.

Your thoughts ..............
Scott Johnson in CD 14