Local redevelopment money headed to state's schools

The Porterville Redevelopment Agency has cut a $373,000 check to the state that will now be used to pay for California’s public schools.

The payment was due Monday after Sacramento County Superior Court Judge Lloyd Connelly ruled May 5 that it was constitutional for state officials to shift more than $2 billion in property tax revenue from local development agencies to supplement school districts. In his ruling, Connelly said the payments to schools were legitimate use of redevelopment funds, because they benefit redevelopment.

While Porterville’s share is smaller than that of many other cities, it accounts for just over a one-third of its total budget. The City delivered its check to Sacramento on Friday.

“It just eliminates the opportunity to do what redevelopment is supposed to do — blight removal,” City Manager John Lollis said. “Instead, that money is going to run school districts.”

According to Lollis, had the Porterville City Council — which also acts as the city’s Redevelopment Agency — not intervened, the loss would have affected potential projects to be built where JC Penney used to stand on Main Street. The agency directed that the funding be backfilled with money from a specials savings account compiled over the years with unspent General Fund money.

Other smaller projects, such as parking lot improvements, could be affected.

“It was a sizable takeaway from the state, but we had the funds set aside, so it wasn’t a scramble,” he said.

The California Redevelopment Association (CRA) is appealing the Superior Court ruling to the Third District Court of Appeal. If the ruling is upheld, the City will pay another approximately $185,000 in Fiscal Year 2011.

“Taking this funding will stall job creation efforts in California at the worst possible time,” John Shirey, executive director for the California Redevelopment Association, said. “The money being turned over to fund state obligations would have been used for local revitalization projects that would have improved our communities, created jobs and stimulated our local economy. CRA plans to file its appeal in the next week or so. We expect to prevail.”

Contact Jenna Chandler at 784-5000, Ext. 1050, or jchandler@portervillerecorder.com.