Redevelopment
Redevelopment agencies have been bleeding public schools, counties and special districts for years. Now the governor has taken a long-overdue stand to recapture this lost revenue. This year’s budget calls for the state to take $2 billion in RDA funds over the next 2 years to augment public education. These are not really “takings” at all but a restoration of property tax revenues to serve public needs, rather than enrich private developers.
RDA tax increment diversions now consume over $5 billion annually, or 10% of all state property taxes. This comes at a direct expense to school districts and counties. Education has some Prop. 98 protections, but cutbacks this year have been deep. Counties have been hit hard, too. Since 1990, Los Angeles County alone has lost $2.7 billion in revenues to redevelopment diversions.