Healdsburg out $2.4M in redevelopment money in new CA budget

Healdsburg stands to lose $2.4 million in redevelopment money under the state budget signed earlier today by Gov. Jerry Brown, according to City Manager Marjie Pettus.

The budget calls for the confiscation of throughout the state as part of the plan for closing California’s $9.6 billion budge shortfall.

However, both the California Redevelopment Association and League of California Cities have indicated they will file lawsuits challenging the appropriation of redevelopment money as an illegal countermand to proposition 22.

 Healdsburg City Councilman Gary Plass said Healdsburg is likely to participate in any such lawsuit.

“What the (California) Legislature is doing is, in our opinion, illegal,” Plass said. “It goes against the will of the voters. I think you’ll see lawsuits, and Healdsburg would be part of a group of cities in the state of California that are suing.”

Prop. 22, which was passed by state voters in 2010, prohibits the state from taking city and county money generated through local taxes.

Redevelopment projects – which include building upgrades, public works improvements and affordable housing construction – are funded through local property taxes.

Plass said he thought the state’s redirection of redevelopment money amounted to a short-sighted ploy.

“The Governor said he wants to stop smoke–and-mirrors legislation and create a clear budget, but you look at this budget and there are a lot of what-ifs … We’re all in this together – we all have structural deficits to work on – but while this budget may help solve the state’s budget problems for the fiscal year, it leaves counties and cities devastated,” he said.

Pettus said that it’s too early to know what impact the state budget will have on local redevelopment programs, citing “conflicting reports about the legislation, timing of implementation and potential litigation.”

But Plass said the would likely jeopardize, or at least delay, projects like renovations to the and the construction of new affordable housing.

“We would absolutely look for other ways to fund these things (if the state seizes redevelopment money),” Plass said. "We don’t want to give up on anything, but these projects would definitely be set back. Where else are we going to find the money?”

Figures on Healdsburg's total were not immediately available Thursday. However, earlier this year, the city money to a series of project.s