SACRAMENTO (AP) — Governor Jerry Brown has signed a rare on-time state budget.
California’s $86 million budget for the new fiscal year includes major changes to community redevelopment agencies, which Gov. Brown and other critics say drain tax money from schools and public safety.
The change will save the state $1.7 billion in the new fiscal year by forcing redevelopment agencies to send more money to schools and local governments, if the change is allowed to stand.
Cities and redevelopment agencies this week pledged to file a lawsuit. They say the Legislature acted illegally when it approved a pair of bills to eliminate the agencies and forcing them to make payments if they want to continue operating.
Supporters defend the agencies as one of the few vehicles promoting construction jobs at a time when California is still reeling from the effects of the recession.
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