The Long Beach Redevelopment Agency may not have to pay the state $6.1 million after all.
Sacramento Superior Court Judge Lloyd Connelly on Thursday ruled in favor of redevelopment agencies, saying it was unconstitutional for the state to ask them to shell out $350 million to fund state obligations.
The California Redevelopment Association, a nonprofit that has about 360 RDAs as members including Long Beach, sued the state in December over the one-time payment of redevelopment dollars to the state to trim its deficit.
The suit claims Gov. Arnold Schwarzenegger and lawmakers violated the constitution when they required the redevelopment agencies to contribute more for education programs so the state could pay less.
CRA Executive Director John Shirey called the decision "a win for redevelopment agencies."
"Obviously the state is dealing with very difficult financial problems, but taking away local government redevelopment funds is unconstitutional," Shirey said in a statement. "Not only are these raids unconstitutional, as validated today by the Superior Court, but they're also poor policy during a recession when those funds should stay in communities to generate jobs and economic activity that we desperately need."
Meanwhile, H.D. Palmer of the State Department of Finance said they are reexamining the decision and considering their legal options. Whether the state will appeal the decision has not yet been determined.
Read more about it in Saturday's Press-Telegram.
Sacramento Superior Court Judge Lloyd Connelly on Thursday ruled in favor of redevelopment agencies, saying it was unconstitutional for the state to ask them to shell out $350 million to fund state obligations.
The California Redevelopment Association, a nonprofit that has about 360 RDAs as members including Long Beach, sued the state in December over the one-time payment of redevelopment dollars to the state to trim its deficit.
The suit claims Gov. Arnold Schwarzenegger and lawmakers violated the constitution when they required the redevelopment agencies to contribute more for education programs so the state could pay less.
CRA Executive Director John Shirey called the decision "a win for redevelopment agencies."
"Obviously the state is dealing with very difficult financial problems, but taking away local government redevelopment funds is unconstitutional," Shirey said in a statement. "Not only are these raids unconstitutional, as validated today by the Superior Court, but they're also poor policy during a recession when those funds should stay in communities to generate jobs and economic activity that we desperately need."
Meanwhile, H.D. Palmer of the State Department of Finance said they are reexamining the decision and considering their legal options. Whether the state will appeal the decision has not yet been determined.
Read more about it in Saturday's Press-Telegram.
Paul Eakins reports on Long Beach City Hall, and local and regional
politics. A newcomer to the Press-
Kris Hanson reports on the Ports of Long Beach and Los Angeles,
covering environmental issues, economic triumphs and
pitfalls and trade trends of America’s largest port.
He also writes a weekly column “On The Waterfront”,
appearing Tuesdays, and also produces an occassional video
and column titled “On The Job,” which follows the hard-working
men and women who keep Southern California’s economy humming.
Karen Robes Meeks came to work for the Press-
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