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S.D. Mayor Not Sure What CA Budget Deal Means for City

Audio

Aired 7/22/09

It’s not yet clear what impact California’s budget deal would have on the city of San Diego. KPBS reporter Katie Orr says a lot could depend on how much money redevelopment agencies are willing to give up.

— It’s not yet clear what impact California’s budget deal would have on the city of San Diego. KPBS reporter Katie Orr says a lot could depend on how much money redevelopment agencies are willing to give up.

San Diego Mayor Jerry Sanders says California’s plan to take local tax revenues to help cover the state budget deficit has changed. The state is now planning to hold on to taxes until December. In the meantime, California will ask redevelopment agencies to voluntarily give up another 10 percent of their funds in an effort to raise $3 billion. Sanders says the plan could reduce the impact to local governments if it works.

“If it does not work, and bear in mind we see a huge potential for failure, it could be even more disastrous for local governments than taking it today because of when it falls in the budget cycle,” he says.

Sanders says if the state doesn’t raise $3 billion by December 1st California will keep the local tax revenue. He says that could force the city to make $60- $100 million in cuts.

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