Each redevelopment agency has designated a "successor agency" - with few exceptions, most notably Los Angeles, a city or county.  John Shirey is Sacramento's city manager and the former head of the California Redevelopment Association.  He says those successor agencies will oversee current projects and ensure all debt payments.

Shirey: "Projects that are under way will continue.  Those that don't have any contracts or obligations associated with them - they'll never get under way.  They're dead."

Also dead: the jobs of city and county employees who worked on redevelopment projects.  Some local governments, like the city of Oakland, are also cutting services that relied on redevelopment funds.  Shirey says cities and counties in that situation have "created their own problems."