You may never have heard of the Sacramento Housing and Redevelopment Agency.  But it's responsible for a lot of construction around Sacramento: the Sheraton Hotel on J Street.  Several flashy buildings on the K Street Mall.  And ironically - even the building Jerry Brown now sleeps in when he spends the night in town.  Those projects all used public redevelopment money - property tax revenues that would otherwise go to cities, counties and schools.  That's where the governor wants that money to go.

Shirey: "It's a penny-wise and pound-foolish proposal."

John Shirey runs the statewide association of redevelopment agencies.

Shirey: "Redevelopment is a program that puts people to work, generates important infrastructure activity, affordable housing, clean-up of contaminated properties and so on."

Brown's budget would phase out the current funding.  It would send an additional 200 million dollars to local governments and schools for the upcoming fiscal year … and nearly two billion dollars in the fiscal year after that.