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Fate Of Redevelopment Agencies Unclear

— The state is relying on $1.7 billion from the elimination of redevelopment agencies across California to help balance its budget. The agencies would be allowed to continue only if they give millions of more dollars to local schools.

Redevelopment proponents have vowed to fight the state in court. Loyola law professor Jessica Levinson said lawsuits would likely be filed under Proposition 22. It passed last fall and prohibits the state from taking money designated for local use.

"Because that proposition is so complex, it’s not at all certain what the outcome of the case would be," she said. "Courts are typically reticent to weigh in on these political disputes, particularly disputes that deal with ballot measures."

Still, Levinson said because the law is so unclear, it may be appropriate for the courts to provide some guidance. If the issue is not overturned in court, the current legislation will stand.

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