This year's budget contained a one-two punch to redevelopment. First, it eliminated the agencies. The court unanimously said that was well within the rights of the legislature. Second, the budget created an alternate program for agencies willing to contribute money to the state. By a 6-1 ruling, the justices shot that law down, saying it violated voter-approved Proposition 22. H.D. Palmer is with the governor's Department of Finance:
Palmer: "We think the fact that the Supreme Court upheld the key component of this budget on a unanimous basis was important not only for the budget but specifically very important for K-through-12 schools."
A disappointed Chris McKenzie with the League of California Cities says redevelopment projects created construction jobs and restored blighted neighborhoods. He hopes lawmakers will revive the agencies in the coming year.
McKenzie: "We think there are ways to skin this cat, and we look forward and hope to work with them and the governor in doing so."
The ruling appears to shift more than $1 billion from redevelopment to schools.