California Professional Firefighters

End of Redevelopment Generates Nearly $4 Billion for Vital Services

Bookmark and Share

Cities, counties, special districts and schools have billions more available for critical services, thanks to the end of redevelopment.

According to new data released by the California Dept. of Finance, local agency general funds have reaped a nearly $4 billion windfall since the state eliminated redevelopment agencies (RDAs). The costly and often-corrupt agencies had been diverting upwards of $6 billion in property tax dollars away from vital services and into the pockets of real estate developers and pet projects.

“The cities complained that the loss of redevelopment dollars was forcing them to roll back vital services,” said Lou Paulson, president of California Professional Firefighters. “Truth be told, there is actually more money available now for the services people expect from their local governments – public education, fire and police protection and critical health services.”

Gov. Jerry Brown signed legislation to dissolve RDAs in 2011, as part of a package of reforms aimed at closing the state’s massive budget gap. California Professional Firefighters led the fight to ensure that these critical dollars would flow back to where they are needed most.

Legal challenges to the law by the League of California Cities ultimately failed when the California Supreme Court upheld the elimination of RDAs.

Since the law took effect, local school districts have received more than $1.3 billion in residual payments from previously diverted RDA dollars. Counties have received over $862 million. Cities have gotten back about $605 million. Special districts – which include fire districts – have gotten back over $300 million.

Since RDAs were eliminated, local school districts have received more than $1.3 billion in residual payments from previously diverted RDA dollars. Counties have received over $862 million. Cities have gotten back about $605 million. Special districts – which include fire districts – have gotten back over $300 million.

The DOF report offers a complete city-by-city, county-by-county breakdown of how much money is flowing back to local agencies.

“Redevelopment money was off limits for any kind of critical services – it could only go to fund ‘projects’ like Stockton’s ill-fated arena or Sacramento’s ‘mermaid bar,’” said Paulson. “With these agencies gone, these dollars are now flowing back to local agency general funds for essential services.”

CLICK HERE to download Dept. of Finance spreadsheet detailing RDA residual repayments.