San Diego city leaders joined together to protest Gov. Jerry Brown’s proposed plan to eliminate California’s 425 redevelopment agencies by July 1 and redirect their revenues to Sacramento in an effort to close the state’s $25.4 billion budget deficit next year. The City Council voted 7-1 on Jan. 24 to pass a resolution authored by District 2 City Councilman Kevin Faulconer that opposes the governor’s plan, stating that the effects would be devastating to the San Diego region. The resolution further stated that the area stands to lose billions in investment dollars, thousands of jobs, and countless neighborhood projects and improvements. District 1 City Councilwoman Sherri Lightner was the lone dissenter, expressing concern that Brown would cut funds for schools and public safety if his plan is not adopted. Proponents of the resolution argue that redevelopment agencies directly address blight in neighborhoods and kickstart development, turning areas that are a drain on the city’s resources into areas that produce a gain. “If it wasn’t for redevelopment agencies, downtown would not look like it does today. These things don’t happen by accident,” said Scott Maloni, interim president of the Downtown San Diego Partnership, which advocates for projects, programs and policies that benefit downtown. “There is an organization and a plan in place to ensure that downtown is redeveloped and has the resources to do so. If you strip down that organization and that resource, then the job can’t be finished.” Among the projects at risk is a potential football stadium for the Chargers, the expansion of Horton Plaza Park, a 2-acre open space along the waterfront north of the Broadway Pier, expansion of the San Diego Convention Center and affordable housing developments and road improvement projects throughout the county. According to a California Legislative Analyst’s Office report dated Jan. 18, redevelopment agencies, which currently receive about 12 percent of statewide property taxes, pull resources away from school districts and other local agencies. The report also stated that there is no reliable evidence to show that redevelopment improves overall economic development in California. Brown’s budget calls for changes in the funding mechanism for redevelopment agencies, which would force local and state governments to find other ways to bankroll local development activities. The governor’s budget would also remove state tax benefits designed to stimulate economic growth within distressed business communities. “I’m conflicted about the governor’s plan because if you take that redevelopment money out, it’s going to hurt the local economy, but the state is in a desperate situation right now,” said Alan Gin, associate professor of Economics at the University of San Diego. “Looking at the projects that the redevelopment is used for, such as the stadium and ballpark, and comparing that to things like teachers being laid off, sometimes it’s difficult to make an argument.” Enacted in 1945, the California Community Redevelopment Law gives counties and cities throughout the state the authority to establish local redevelopment agencies to create project areas, issue bonds and acquire property through eminent domain. Redevelopment agencies are funded through property taxes. As they create redevelopment project areas, growth created in property taxes, called tax increment, is used to finance current projects. Normally, those funds would be sent to school districts and local agencies. The governor claims that billions in property tax revenue will be directed to schools, cities and counties to help fund education, public safety and other vital services. Additionally, funds would be used to repay an estimated $2.2 billion in redevelopment debts and obligations.