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Senate Budget Subcommittee Voices Concern about DOF Redevelopment Dissolution Budget Proposal

Dozens of City Officials Testify in Opposition

April 10, 2015
In a hearing lasting more than two hours on Thursday, dozens of cities testified before the Senate Budget Subcommittee No. 4 on State Administration and General Government.
They traveled to Sacramento to convey their strong opposition to the Department of Finance’s (DOF) proposal to enact a comprehensive set of changes to redevelopment dissolution laws. During the hearing, committee members repeatedly expressed serious concern over DOF’s proposal and ultimately held the item. The committee’s action yesterday is similar to that of the Assembly Budget Subcommittee No. 4 on State Administration, which heard this proposal on March 3. That committee also left the item open.

Dan Carrigg, the League’s legislative director, provided initial opposition testimony. He was followed by a panel of three city representatives: Riverside Mayor Rusty Bailey, Watsonville Mayor Pro Tempore Felipe Hernandez and Glendale Chief Assistant City Attorney Gillian van Muyden. The three, along with other city officials and representatives from cities throughout California, focused on the numerous provisions in this proposal that seek to reverse recent appellate court decisions favoring agencies retroactively, reverse incentives and conditions affecting loan repayment, undercut opportunities for local agencies to protect their rights and limit the transparency of the DOF decision making process. This testimony reflected the opposition of the numerous cities that also submitted formal letters of opposition on the proposal to the Senate committee. The League delivered copies of these letters to the committee prior to Thursday’s hearing.
Committee members pressed the DOF representatives on the retroactive provisions of the proposal and asked for clarification on the DOF’s intent through the proposal. Committee members expressed concerns with the proposal’s effects on court rulings.
Next Steps
The item is still open in both the Assembly and Senate Budget Subcommittee No. 4. The League anticipates that DOF will propose revised language in conjunction with the release of the Governor’s revised FY 2015-16 budget in early May. Both subcommittees would then review the revised proposal.

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