The California budget agreement finalized last night cuts healthcare for poor kids, allows drilling off of Santa Barbara, and rolls back prison sentences. What else can this ingenious piece of proposed legislation do? Bum out the Community Redevelopment Agency (CRA), the city-created agency that partners with development companies to build projects. The CRA is crying foul over the seizure of $1.7 billion in redevelopment funds from counties, including $313.4 million from Los Angeles County (that number according to the LA Times). The CRA says it "will be forced to give the state $72 million that was targeted to help some of the poorest communities in Los Angeles," and that giving the money back will cost the city 2,300 construction jobs and $360 million in private investment. Just looking at Hollywood, here's a look at what at-risk projects would be affected, according to the CRA: An affordable housing project at Hollywood & Western and the Hollywood CAP Park.
The Los Angeles County Board of Supervisors isn't having any of it. They voted this morning to sue the state if it goes through with the seizures, and Councilman Greig Smith said the city will probably join that lawsuit. According to the LA Times, however, a lawsuit could "trigger a provision in the proposed legislation that allows the state to take $301 million in county Proposition 1A funds." How clever. The CRA is fighting back too--they and several local stakeholders (including labor groups, developers, and environmental organizations) will be rallying on top of the Music Box in Hollywood tomorrow morning to protest the budget plan. The proposed budget will also take city revenues from property and gas taxes, and lawmakers could make it official as soon as Thursday.
Meanwhile, from the Hollywood CRA office, here's a list of what they say would be at risk:
· A deal -- at last [Sacramento Bee]
· L.A. supervisors to sue to block state budget cuts; other local governments expected to join [LA Times]
· CurbedWire: Hollywood Park Looks So Very Nice and Green [Curbed LA]
· Hollywood's Great Revitalization: So What's Happening Now? [Curbed LA]
· L.A. would lose $166 million under budget deal, city says [LA Times]