Local Officals Working With Finance Department to Resolve Redevelopment Funds Dispute
Local officials are trying to deal with a sudden demand for hundreds of millions of tax dollars the state says they owe. The issue arises from the state's abolition of local redevelopment agencies earlier this year.
Officials in counties and cities scattered across the Bay Area expressed shock this week at the state's sudden demand for payment of funds collected by former redevelopment agencies.
The deadline for payment came and went Thursday. Many jurisdictions either dispute the state figures or don't have the money. Chris McKenzie is executive director of the League of California Cities.
“The Department of Finance has worked very hard to try and implement the law properly, but they've had much less time than they need to do it,” he says. “The cities across the state have tried to adhere to the law and respect it, but in many cases the rules were unclear.”
McKenzie is encouraging members that disagree with the charges to present their cases to the state Department of Finance in order to get them resolved as quickly as possible.