California’s pay over $45 billion in property tax each year — typically the largest source of local, general purpose revenues. More than 60 years ago, the Legislature established a process in which a city or country could declare an area “blighted” and in need of redevelopment. When that happened, most of the property tax revenue growth from the project area went to a local redevelopment agency — or RDA — instead of for other local services like schools and public safety. RDAs grew and grew and by 2012, were receiving $5 billion in property tax revenue — about 11% of the total property taxes collected statewide — and had tens of billions of dollars in outstanding bonds, contracts, and loans.

Citing the need to focus on core government program, Gov. Brown called for the dissolution of RDAs in his 2011-2012 budget. What impact will their closure have on the State Budget? And what is future for blighted areas and low and moderate income housing with the demise of RDAs? We’ll ask Allan D. Kotin, Professor at the USC School of Policy, Planning, and Development; Marianne O’Malley, Managing Principal Analyst for State and Local Finance at California’s Legislative Analysts’ Office.

ORIGINAL AIR DATE: JULY 2, 2012