Organizations that represent California’s cities and redevelopment agencies have filed a lawsuit challenging recently passed legislation that all but eliminates redevelopment as a separate entity.
The League of California Cities, California Redevelopment Association and the cities of San Jose and Union City filed will challenge in the bill as unconstitutional in the state Supreme Court, citing voter-approved Proposition 22 which barred state raids on local funds.
Read on for their joint release sent out a few minutes ago.
SAN FRANCISCO — Today, the League of California Cities (League), the California Redevelopment Association (CRA) and the cities of San Jose and Union City filed a petition with the California Supreme Court, challenging the constitutionality of AB 1X 26 and AB 1X 27, the two redevelopment bills passed as part of the state budget in June. AB 1X 26 eliminates redevelopment agencies. AB 1X 27 allows agencies to continue to exist (albeit on life-support) if they agree to pay their share of $1.7 billion this year and $400 million annually in perpetuity.
The lawsuit also requested the California Supreme Court to issue a stay to prevent the legislation from going into effect until the Court can rule on the merits of these claims.
The central claim in the lawsuit is that AB 1X 26/27 violate Proposition 22, the constitutional amendment passed by 61% of California voters in November 2010, just eight months ago. Proposition 22 was passed by voters to “conclusively and completely prohibit State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending, or otherwise taking or interfering with” revenue dedicated to local government. The revenues protected by Proposition 22 specifically include the annual increments of property taxes allocated to California’s 400 redevelopment agencies.