May 6, 2010 (San Diego’s East County) – A Sacramento County Superior Court ruled last week in favor of Governor Arnold Schwarzenegger’s plan to raid more than $2 billion from local redevelopment funds. The Governor wants to transfer those monies to school operations.
“La Mesa will take a hit of $1,200,000.00,” La Mesa Mayor Art Madrid told East County Magazine in an e-mail.
He added, “This is another example of how the state's dysfunctional and immoral behavior is penalizing local jurisdiction and their residents in order to cover for their gross mismanagement and failure to carry out their constitutional responsibilities. Be assured that this court decision will be appealed!”
Local governments had sought an injunction, arguing that shifting the funds was unconstitutional and would prevent redevelopment agencies from starting projects to create jobs at a time when the state’s unemployment rate is 12.6 percent. The California Redevelopment Association, lead plaintiff in the case, s determining whether to appeal. “The Legislature needs to deal with its budget problems by making hard decisions using its own limited resources—not by taking away local government funds,” John Shirey, executive director, said in a prepared statement.
The state Controller’s office reports that state income tax revenues are 30% below expectations, a $3 billion drop in April, widening the budget gap.