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San Jose Latest City To Rush To Use Redevelopment Funds

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MikeColgan20100909_KCBS_0410r Mike Colgan
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SAN JOSE (KCBS) – San Jose has become the latest city to speed through redevelopment projects, as Governor Jerry Brown threatens to use that money to help fill California’s massive budget deficit. The action came in an extremely rare special city council meeting.

KCBS’ Mike Colgan Reports:

Cities were swept with a wave of fear last week when Brown proposed averting $5 billion in property taxes from redevelopment agencies in order to close a $25 billion state deficit. It prompted a number of cities, including Los Angeles and Oakland, to take immediate action.

”Taking money this year and promising to give it back in a future budget, is one of the oldest tricks in the budget gimmick book,” said San Jose Mayor Chuck Reed. “I can’t put any faith that if they take redevelopment funds, that Santa Clara County will ever see a nickel of it back because the state legislature doesn’t have a great track record of doing that.”

While the legislature has yet to act on the governor’s proposal, Councilmember Nancy Pyle said that San Jose shouldn’t take any chances.

”I think it’s better to be safe than be sorry,” said Pyle.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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