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<br />I City of Redwood City <br />, Office of the City Manager <br /> <br />80 <br />Page 1 <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />May 18, 2009 <br /> <br />RE: <br /> <br />Honorable Mayor, Council Members/Redevelopment Agency Board <br /> <br />Peter Ingram, Oty Manager/Executive Director ~ <br />Main Street Recovery Campaign Coalition ' <br /> <br />TO: <br /> <br />FROM: <br /> <br />The League of California Cities (League) and the California Redevelopment Association (CRA) are <br />building a statewide coalition to protect local government and redevelopment funds from <br />further "takings" by the State government. <br /> <br />Faced with budget deficits ranging from $8 billion to $15 billion depending upon the passage of <br />the ballot measures on the May 18 special election, the State is expected to turn to local <br />government and redevelopment coffers to help balance the projected deficits. If the ballot <br />measures do not pass, the deficit is expected to grow to $32 billion in FY 2010/11. While any <br />money taken from local government must be repaid, there is no such protection for the taking <br />of redevelopment funds. Cuts to redevelopment funds are expected to be permanent and <br />ongoing. It is also anticipated that the State will appeal the recent court ruling overturning AB <br />1389 and the transfer of some $350 million in redevelopment funds to County ERAFaccounts to <br />help balance the FY 2008/09 State budget; and/or find other ways to access redevelopment <br />funds to help balance the State budgets. <br /> <br />Redevelopment is the State's only ongoing economic stimulus tool, annually generating: <br /> <br />. 310,000 good-paying jobs <br />. $32 billion in total economic activity <br />. $1.6 billion in state and local taxes. <br /> <br />Many industries would be impacted by a further loss in Redevelopment funding, including: <br />utilities, construction, manufacturing, trade, transportation, warehousing, finance, real estate, <br />professional services and management, other services, and government. <br /> <br />Build B Great Community Together <br /> <br />Excellence: Passion To Do Our Best In Each Moment Integrity: Do The Right Thing, Not The Easy Thing <br />Service: We Care And It Makes A Difference Creativity: Freedom To Imagine And Courage To Act <br />