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League Sends Letter to Governor Urging Legislation to Address Problems With Implementation of AB 1 x 26

January 30, 2012
Redevelopment agencies throughout California are required to shut down on Wednesday, Feb. 1 with the Legislature having chosen not to take up and pass SB 659 (Padilla). With Wednesday's pending deadline, the California Redevelopment Association (CRA) and the League have been working to inform the Legislature and the Department of Finance of the serious problems in AB 1 x 26. The concern is that the defects in the legislation may be so serious that they could impede the ability of local agencies to effectively manage public funds during the dissolution process.
 

The League on Friday, Jan. 27, sent Gov. Jerry Brown a letter outlining the League and CRA's concerns and requesting that he work with the Legislature and both organizations to enact amendments to fix flaws in AB 1 x 26. The letter outlines the major categories under which the critical issues fall:

  • Possible bond defaults;
  • Loss of taxpayer funds;
  • Possible violations of federal law;
  • Stranded public infrastructure projects; and
  • Loss of critical staff to implement the law.

Both organizations want to collaborate with the Governor and Legislature in order to prevent harm to the public interest and to keep California on track in its economic recovery.



 
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