Eliminating Redevelopment Agencies: A Good Idea Implemented For the Wrong Reasons

By Allan Mansoor – Assemblyman, 68th District

Last week I voted to end redevelopment agencies (RDAs). While RDAs have been the source of wasteful spending at the local level, the biggest problem with RDAs is that they are a conduit used to initiate eminent domain actions against private property owners. In doing so, cities pick winners and losers by interfering with the free market.

The proposal to end RDAs was introduced by Democrats. Democrats generally oppose eminent domain reform measures and regularly use RDAs to support earmarked spending in their districts. With this in mind, their proposal deserved skepticism. What was their motive?

At a time of major budget deficits, the Democrat budget proposal included cuts to education along with increases to welfare and social services and new benefits to public employees. Their motivation in ending RDAs wasn’t an altruistic vision that RDAs are wrong. They wanted RDA money to pay off their public employee union supporters.

Redevelopment agencies are funded from the $45 billion Californians pay in property taxes. The RDA money in question is about $1 billion in savings that will be recognized after RDAs are eliminated. These are property tax revenues that I think should remain with local government. I am aware that there is abuse at the local level, but that abuse pales in comparison to what can happen at the state level where the abuse is more severe and more difficult to correct.

Raiding local treasuries is particularly troublesome in the current economic environment. I served on the Costa Mesa City Council and am aware of the fiscal crises facing many cities. For many cities, the unexpected taking of RDA funds is going to make tough times even worse.

The measure to end RDAs was actually two measures. One ended RDAs and the other took their money. My Republican colleagues who called the proposal a “money grab” were right when they focused only on the end result. But taken by itself, the bill to end RDAs was one of the most important pieces of legislation affecting private property rights in recent memory. I supported it even though I opposed the other. Unfortunately, the money-grab-measure passed.

In California, even the slightest victory in the fight for protecting property rights is cause for celebration, but victories public employee unions give us on a silver platter are hollow victories. As long as public employee unions control Sacramento, they can recreate RDAs anytime RDAs will serve their interests.