The State of Califrornia Legislative Analyst Office has provided an overview of the Governor’s “May Revise” budget. In the overview, the analyst suggests that as much as $300 million can be saved for California schools by making changes to redevelopment law.
From the Appendix:
LAO Alternative Budget: Additional Savings Proposals
Issue 2008-09 K-14
Redevelopment-Capture prior-year underreported redevelopment pass-through payments. – $70.0 million
A State Controller’s Office audit found that (1) some redevelopment agencies have not made required pass-through payments to K-14 districts and (2) some K-14 districts have not reported these sums as property taxes. We recommend (1) redevelopment agencies be required to pay overdue sums and (2) K-14 districts modify their reporting to offset the state’s last five years of increased costs.
Redevelopment-Modify redevelopment pass-through process to ensure funds are provided and reported on an ongoing basis. – $ 28.0 million
We recommend the Legislature simplify and clarify the redevelopment pass-through process so that there are fewer future errors and increased property taxes for schools.
Redevelopment-Increase redevelopment K-14 pass-through requirements. – $ 200.0 million
Redevelopment increases state costs to fund K-14 districts. Requiring redevelopment agencies to pass-through an additional 5 percent of their tax increment revenues would partly offset this fiscal effect.
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