Faced with a $28 billion deficit, Gov. Jerry Brown has been eying funds from the state’s 400 redevelopment agencies to help balance the budget. Many cities across the state have questioned that assertion and sought ways to secure RDA moneys, which are used for everything from affordable housing to small business loans. San Jose and Fremont have already secured at least part of their funds by reaching collaborative agreements between their respective City Councils and RDAs. Now it is Santa Cruz’s turn.
Faced with a $28 billion deficit, Gov. Jerry Brown has been eying funds from the state’s 400 redevelopment agencies to help balance the budget. Many cities across the state have questioned that assertion and sought ways to secure RDA moneys, which are used for everything from affordable housing to small business loans. San Jose and Fremont have already secured at least part of their funds by reaching collaborative agreements between their respective City Councils and RDAs. Now it is Santa Cruz’s turn.
Yesterday, City Council passed a unanimous resolution condemning Brown’s efforts to seize the money. When it meets again on Feb. 8, it will likely approve a cooperative agreement like those by Fremont and San Jose to secure at least $22 million for projects that have already been approved.
The largest part of this money, $13 million, is earmarked for the Monterey Bay National Marine Sanctuary now under construction at the intersection of Pacific and Beach. The project is expected to be a major tourist draw to the city. Other conspicuous uses of the money include the Tannery Arts Center and improvements to Lower Pacific Avenue and Riverside.
But RDA money is also used for a number of low profile projects that have an enormous impact on the city. The most talked about of these is downtown patrolling by a private security firm, which has recently been extended by City Council. Money is also used to remove graffiti and support libraries and schools. Renovation projects make housing more accessible to people with lower incomes.
Then there are the jobs created by RDA money. At his State of the Union address last night, President Obama highlighted the importance of creating jobs by asking business owners who benefited from the stimulus funds to be his guests in Congress. As we reported yesterday, these included the owners of the Penny Ice Creamery, who were able to launch a new business and hire 21 new people because of stimulus—and RDA funding.
The Sonoma News points out that, “According to the League of California Cities, redevelopment agency-funded projects support 300,000 California jobs annually, including 170,000 in construction. Redevelopment contributes more than $40 billion a year to the state’s economy and generates more than $2 billion in annual state and local taxes.” Brown hopes to raise just $1.7 billion—$300 million less—than RDA funding brings in statewide. Read more at the Santa Cruz Sentinel.
