As part of this year's budget package, Governor Jerry Brown pushed lawmakers to eliminate redevelopment agencies and set up an alternate program for agencies that contribute money to the state. Redevelopment supporters immediately sued, saying the changes violated voter-approved Proposition 22. Not so, says H.D. Palmer with the governor's Department of Finance:
Palmer: "We believe the law is clear, that these agencies were created by an act of the legislature, and similarly, they can be dissolved by an act of the legislature."
But Chris McKenzie with the League of California Cities says the state can't use one constitutional power to reach an unconstitutional result:
McKenzie: "It's an abuse of their power - you can't violate the constitution and claim, oh, but we really are just using this other power that we have."
The California Supreme Court says it will rule on the case by mid-January.