In connection with the 2011-2012 budget adopted by the legislature last night and signed into law today, Gov. Jerry Brown signed two trailer bills, ABX1 26 and ABX1 27 that would eliminate California’s redevelopment agencies (RDAs) by October 1, 2011 unless the counties or cities that established the RDAs agree to reduced funding.

To preserve its RDA, a city or county must elect by November 1, 2011 to participate in a voluntary alternative redevelopment program and agree to share some of its revenues with schools and special districts. The California Redevelopment Association and the League of California Cities contend that these bills are illegal as they violate the state constitution and Proposition 22 passed by the voters last fall. Legal challenge is almost certain.

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