The state's high court released a decision Thursday that will likely send both sides back to negotiations. The state is counting on $1.7 billion from eliminating about 400 redevelopment agencies in this year's budget.
The justices said the state Legislature has the power to eliminate them, but the state was not allowed to impose new funding requirements.
The court split the decision by affirming the state's right to eliminate redevelopment agencies but upholding Proposition 22, which banned the state from raiding local government funding, saying the state could not force payments from agencies as a way for them to remain in business.
---------------------------------------------------------------------------------------------------------------------
Governor Brown Issues Statement on California Supreme Court Ruling on Redevelopment
SACRAMENTO – Governor Edmund G. Brown Jr. issued the following statement regarding today's ruling by the California Supreme Court:
"Today's ruling by the California Supreme Court validates a key component of the state budget and guarantees more than a billion dollars of ongoing funding for schools and public safety."
