The Honorable Tom Torlakson, Chairman
Assembly Housing and Community Development Committee
State Capitol
Sacramento, California   95814

RE: AB 923 (McClintock) SUPPORT

Dear Chairman Torlakson and Members of the Committee:

Please support AB 923 when it comes before you for consideration.

The C.R.L. has been reformed and reformed, but until there is real accountability and an oversight committee from the Dept. of Finance and the Attorney General's office, the C.R.L. is not reformable! It should be abolished and the diverted tax dollars returned to the Schools, Fire Depts., Police and Sheriff Depts., Libraries and the State General Fund.

The most recent reform, AB 1290, which became law Jan. l, 1994, was sponsored by the C.R.A. The author, Phil Isenberg wrote the Joint Interim Hearing Committee on the Definition of Blight in San Diego Dec. 1995 and suggested the Joint Committee look into nine issues. Mr. Isenberg asked "What can and should the state do to help prevent redevelopment abuse from occurring? The State has a direct fiscal interest-the state General fund heavily subsidizes local redevelopment activities-and we have a clear policy duty to protect against abuses." The state general fund lost $400 million as a result of redevelopment, according to the Legislative Analyst's office.

A short three years after AB 1290 was touted as a major reform, AB 1342 which would remove the time limits on R.D.A.s has passed the assembly with a 44-29 votes. The most egregious part of AB 1342 is that it removes citizens precious referendum rights on plan amendments. AB 1290 was an attempt to introduce some fair play into redevelopment and was one step forward. It limited tax diversions by R.D.A.s. With AB 1342, one city that stretched the definition of blight into the cow pastures wants to undo the limited fair play provided by AB 1290.

R.D.A.s can easily access the municipal bond market, without taxpayer approval, with sometimes as few as three votes of the agency members. School districts need the approval of two-thirds of voters to pass school bonds. Redevelopment has distorted public financing in California, agencies throughout the state today owe more than $10 billion-five times the total debt of the state's 1,000 school districts.

Redevelopment diverts current and future property taxes that normally go to the Fire Dept., Police and Sheriff, Schools, Libraries, and causes the need for assessments to fund the services we have already paid taxes for.

Redevelopment is an employment and financing mechanism for consultants, lawyers, and developers. Local government through redevelopment agencies created the maniacal pursuit of sales tax projects. To stop the abuses here we need sales tax disbursement on a per-capita, rather than the current point-of-sale basis.

The people who profit by redevelopment won't change it, you the legislative body can change it, but will you?

Please support AB 923. Thank you for your consideration.

Sincerely,
Jean Heinl, Director/Founder C.U.R.E.
8917 Alexander Ave., South Gate, CA 90280
Ph. 213-567-6737...Fax 213-567-7545

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