State Controller Sides With San Jose over County in Spat Over Redevelopment Dollars
In yet another fight over former redevelopment funds, the state controller says Santa Clara County officials overreached their authority in withholding more than $86 milllion in property taxes from San Jose. City officials were shocked at the county’s interpretation of the law passed to dissolve the redevelopment agencies. Councilman Sam Liccardo says the city has bond holders it must pay, and that they need to be paid before the county.
“We’re seeing bond ratings on RDA bond issuances in cities throughout the state being pushed down to junk bond status,” says Liccardo. “And that’s causing a lot of cost, public cost, for cities throughout the state.”
Critics say the new law was poorly written, allowing for creative interpretation. New legislation introduced Tuesday is intended to clean up some of the confusing language. But it’s not likely to cool rivalries over how that money is spent.