Fortuna Redevelopment Agency Makes $94,613 Payment to Cover State Raid of Local Funds

The Fortuna Redevelopment Agency made its second payment in as many years to pay its share of a $2.05 billion State raid of local redevelopment funds passed by the State Legislature in 2009. The Fortuna agency payment of $94,613 is part of $350 million paid on May 10 by hundreds of redevelopment agencies statewide.  The funds will go to meet the State’s obligations to trial courts.   Last year, redevelopment agencies paid a total of $1.7 billion to cover State budget spending.
The California Redevelopment Association has filed a lawsuit challenging the constitutionality of ABX4-26, the State budget trailer bill passed in July 2009 as that authorized the $2.05 billion raid of local redevelopment funds to use for State purposes.  The lawsuit is currently under appeal at the Court of Appeals.
ldquo;At a time when our local economy is still in recovery, we’re once again sending vital local funds that pay for job-creation and economic growth instead to solve Sacramento’s chronic budget mess,” said Duane Rigge, Executive Director of the Fortuna Redevelopment Agency.
This payment comes at a time when Governor Brown is seeking to abolish redevelopment agencies altogether.  A broad coalition of local government, business and labor has successfully fought the proposal and, thus far, the Governor has failed to garner enough votes to eliminate redevelopment agencies. The coalition warns that abolishing redevelopment agencies would result in the loss of more than 300,000 private-sector jobs and billions in economic activity annually statewide.
“Redevelopment is a vital tool to create local jobs, reduce crime, build affordable housing, clean up contaminated toxic sites, and otherwise transform rundown, blighted communities in need,” said John Shirey, executive director, California Redevelopment Association. “Redevelopment is one of the only tools local governments have to improve the local economy and put people to work.  Continued State raids of local funds are not only illegal, but they make no fiscal sense at a time when we should be emphasizing job-creation.”
For more information about the Governor’s proposal and the coalition fighting to stop this illegal and fiscally reckless proposal visit http://www.protectourlocaleconomy.com www.ProtectOurLocalEconomy.com