Update: City's Fears Come True as Brown Signs Budget and Bills Cutting Redevelopment

Two bills that were part of the state budget signed by Gov. Jerry Brown today will essentially dismantle redevelopment agencies across the state, which has a number of them threatening litigation. 

The stage is set for a showdown between the state and number of cities, boards and organizations across the state. Among them is Loma Linda and the Redlands Chamber of Commerce.

The bills at the center of the fight are AB 1x26 and AB 1x27. One dismantles redevelopment agencies as they exist. The other allows them to re-emerge if they participate in an alternative redevelopment program that would require them to pay the state to participate, said Kathy Fairbanks, spokeswoman for a coalition of entities, including Loma Linda, that opposed the bills.

A lawsuit by the League of California Cities and California Redevelopment Association is coming, said Fairbanks.

"There are a number of agencies that will not be able to make these ransom payments," Fairbanks said. "We’re calling the ransom payments and they are. If you look at them that exactly what it is."

At least 50 entities have already indicated to the coalition that they will not be able to afford the payments, she said.

In preparation for bill's passing, Loma Linda announced Tuesday it will participate in a lawsuit if it is filed.

“The council did give direction of the staff to go forward and protect the interests of the agency in that litigation by joining in the litigation,” said Loma Linda City Attorney Richard Holdaway.

Late Tuesday, State lawmakers approved a budget plan that includes cuts in funding for state universities and social service programs.

The plan also called for the cuts to the courts and the closure of 70 parks, a first ever, reported the Los Angeles Times. UC and CSU campuses will see a 23 percent reduction.

AB 1x26 and AB 1x27 were trailer bills, or simply a bill attached to the budget that does not undergo as much scrutiny.

The passing of these bills could potentially cost Loma Linda millions and could bring development on projects such as senior housing to a crawl, if not halt it completely, city officials have said in the past.

The bills also defy Proposition 22, passed last year by voters. The proposition prohibits the State from taking funds used for transportation or local government projects and services, according to legislative analysts.

“They are essentially bypassing the proposition by getting rid of the redevelopment agencies,” Holdaway said.

Chris McKenzie, executive director of the League of California Cities, released a statement Monday.

“It is deeply regrettable that the Governor is choosing to ignore the State constitution and sign illegal legislation to eliminate redevelopment agencies,” he wrote. “This is a smoke and mirrors budget that includes a phantom $1.7 billion in revenues from redevelopment agencies that will never materialize, ultimately triggering deeper cuts to other state programs down the line.”

“AB 1x 26/27 violate the State constitution,” he continued. “Voters just passed Proposition 22 overwhelmingly in November to prevent this type of State raid of local funds. If the Governor signs this legislation, we will file litigation at the earliest opportunity to defend the constitution and the will of the voters.”