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California Redevelopment Association to Sue State to Keep Money From Local Schools

An email update from the Executive Director of the California Redevelopment Association indicates that the association plans to sue the State of California to stop them from re-directing developer subsidy money to local schools..

Last week, the state legislature passed a number of bills to balance the state budget, including one that would re-direct money help by local redevelopment agencies and re-direct it to supplemental education funds for the K-12 public school system. Local redevelopment agencies use property tax money raised from special project areas to subsidize development. The state budget would re-direct roughly $2.05 billion of those funds across California to local schools, including around $2 million to the Alameda Unified School District.

But the California Redevelopment Association, a Sacramento lobby group of builders and developers, isn’t taking it lying down. They plan to sue the State of California to stop the funds from being re-directed to the schools, claiming that it is “unconstitutional.” In the letter to members, the Executive Director wrote:

In response to the unconstitutional taking of redevelopment funds, CRA’s legal team has begun preparation of another lawsuit to challenge the State’s action.

Over the past few weeks, Alameda City Councilmember Lena Tam has disclosed to council that she has been working closely with the Association to prevent the re-direction of funds. Also, City of Alameda Development Services Director Leslie Little is on the board of directors for the Association.

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