Robbing Peter to pay Arnold
Our state politicians love to share, and they hate for anyone to feel left out. So they’re spreading the pain of the state’s budget crisis by hoovering $350 million out of local redevelopment coffers, in order to pay their school bill.
Alameda will have to shell out $917,000 development officials here saved for projects like improvements along Webster and Park streets. The payout could also further slow bigger projects like Alameda Landing, because the loss of those funds will reduce the city’s bonding capacity, Development Services director Leslie Little told us.
“We’re going to be rewarded for saving, for cobbling together these capital projects every year, by having to give that money to the state,” she said.
Even worse, Little’s not sure if this is a one-time thing or if the state is going to keep sticking its hand in the local redevelopment kitty year after year (never mind the fact that this year’s state budget could be rewritten if the governor gets his way). That, she said, would impact all of the city’s redevelopment projects.
For more details, check out this piece by the East Bay Business Times’ Mavis Scanlon.