City to fork over $1.6M

DOWNEY - City officials will soon remit nearly $1.6 million in redevelopment funds to the state after a Superior Court judge said California has the right to use the money to help balance the state's budget.After much debate, Sacramento Superior Court Judge Lloyd Connelly maintained that the state was within its rights to acquire the funds, which will help save the state more than $1.7 billion this year alone. However, many local governments believe the move is inconsiderate and possibly illegal. Assistant City Manager and Treasurer Gilbert Livas said the checks to the state from Downey have already been cut and will be forwarded shortly. The city will utilize money from its housing fund to pay the state mandate, said Livas. "The state has done this before - raided redevelopment agencies to balance the books," said Livas who believes the measure will take away critical funds. "It hampers redevelopment projects - and obviously given this time of fiscal insecurities, these funds are needed." Last year, Gov. Arnold Schwarzenegger and lawmakers agreed to use the money from redevelopment funds for schools as a way to make up for declining general fund revenue. -- Christian Brown, Staff Writer

********** Published: May 14, 2010 - Volume 9 - Issue 4

NewsEric Pierce