Lethal blow to CRA's

The California Supreme Court dealt a lethal blow Thursday to the state's 400 community redevelopment agencies, ruling unanimously that the Legislature had the power to dissolve the organizations and seize more than $1 billion in tax revenue. Barbara Jones in the Daily News.

In its 83-page ruling, the court upheld a new law that abolishes the CRAs, but invalidated a companion bill that would have enabled the agencies to continue operating if they transferred a large chunk of their revenues to the state.

Gov. Jerry Brown and lawmakers hailed the ruling, saying it validates the Legislature's authority over the state budget and guarantees ongoing funding for schools and public safety. Officials estimate that K-12 schools will reap more than $1 billion this year and could conceivably receive that much next year, based on complex funding formulas