The future of state redevelopment agencies is in the hands of the courts now, but in the meantime, a partial stay has been issued giving those agencies a reprieve from making required payments to the state to keep redevelopment going. The California Supreme Court agreed to hear a petition filed in July challenging the constitutionality of recent legislation eliminating redevelopment agencies unless they pay the state to continue operating, it was announced Thursday. The announcement comes on the heels of a new Sacramento city ordinance establishing an agreement to make the required payments to the state to maintain redevelopment activity. The ordinance states, however, that the payments

Gov. Jerry Brown’s proposal to slash redevelopment agencies spurred a protest and press conference at the Convention Center Friday, bringing together Sacramento leaders and about 100 officials from cities throughout the state. Chris McKenzie, executive director of the League of California Cities, said that cities may consider suing the state if it disbands redevelopment agencies. Brown’s office contends that local services, such as schools and public safety, could receive the funding currently used by redevelopment agencies if the agencies shut down. But city leaders in Sacramento and throughout the state argue that ending redevelopment agencies would seriously harm jobs and local develo

By Justin Smith The California Assembly recently approved AB 155 (Mendoza), a bill that prohibits cities and counties from filing bankruptcy without state approval and is headed to the Senate. The bill requires local governments and counties to get approval from the California Debt and Investment Advisory Commission (CDIAC) before filing for bankruptcy. The California Debt and Investment Advisory Commission consists of the State Treasurer, the Governor or the Director of Finance, the State Controller, two local government finance officials, two Assembly Members, and two Senators. The bill is backed by several unions and the most notable among them is the California Professional Firefigh