Digital News Report – There is a debate brewing over funding for social programs or redevelopment agencies. The budget shortfall is putting a strain on state funding. This is concerning some California lawmakers who believe the money would be better spent on community projects.
The City of La Mirada had published their concerns. City Manager Tom Robinson says redevelopment money is used to generate jobs in the construction industry and beyond. “Many of La Mirada’s major revenue generating businesses, hotels, and restaurants came about due to Redevelopment Agency efforts,” Robinson said.
Redevelopment money is estimated to produce 300,000 jobs in the state. The statement from the city says that RA contributes “some $40 billion annually to California’s economy in the generation of goods and services.” Plus the agencies generate $2 billion annually in State and local taxes.
The money may be shifted from redevelopment to fund local housing authorities. “Without this key economic development tool, La Mirada and other cities in California will face major challenges in attracting and retaining major businesses,” the statement added.
It is unclear how the money will be used by local housing authorities. But if the plan is implemented it could affect cities throughout the state. There may be some tough choices made with state budget.
By Mark Williams