Governor Schwarzenegger dodges a $2 billion bullet
Anthony York of the LA Times is reporting that Sacramento County Superior Court Judge Lloyd Connelly just issued A 26 page ruling that taking $1.7 billion from redevelopment coffers and transferring it to schools is a “redevelopment benefit.”
If this withstands an anticipated appellate challenge this ruling will represent a significant hit on those agencies who feed at the public troth.
To read the Times account simply go to this link:
http://www.latimes.com/news/local/la-me-state-budget-20100505,0,6761874,print.story
The Associated Press account of this decision reads in part:
“Gov. Arnold Schwarzenegger on Tuesday won the right to raid local redevelopment funds to help close California’s budget deficit, but the court ruling provides only a ray of good news in an otherwise bleak fiscal outlook.
Sacramento County Superior Court Judge Lloyd Connelly ruled that the state can take more than $2 billion from local redevelopment funds and transfer the money to school operations. Local governments objected to diverting the money, which generally is used to promote public works projects and rehabilitate downtowns.
“We dodged a bullet,” said Schwarzenegger’s spokesman, Aaron McLear. “This would have added $2 billion to our deficit.”
Taking $ away from redevelopment agencies is a good thing. Giving it to schools, however, is not so good. Schools are experts at throwing money down the drain.
I’m moving to Arizona where people have some sense, and I hope they don’t have redevelopment agencies there.
Larry,
Thank you for reporting this important judicial decision. Yes, education does improve lives and create an educated workforce.