Brown Signs Parts of California's $86 Billion Budget

With a new fiscal year beginning Friday and a budget in place, state lawmakers may be breathing a sigh of relief, but local leaders aren't.

The budget package is finalized in a series of bills, some of which were signed by Gov. Jerry Brown on Wednesday. Those portions call for the displacement of redevelopment agencies, steering $1.7 billion to the state. Brown could sign the entire budget Thursday, before the new fiscal year begins on Friday.

“The state thinks eliminating redevelopment agencies is a sound decision,” said Coronado Mayor Casey Tanaka. “I think it's a terrible decision.”

Other city leaders agree."We're much poorer than we were a few days ago," Poway City Manager Penny Riley said. "I see it as a devastating blow for redevelopment agencies, but we still have a workable future."

The $86 billion budget, which was approved in both houses on Tuesday without Republican support, relies on projections of $4 billion more in state revenue and deep cuts to higher education and courts.

Of the budget bills approved by the Legislature late Tuesday, two seek to change the way redevelopment works in California.

Assembly Bills 1X-26 and 1X-27 seek to restructure redevelopment agencies—which allow cities to develop communities in blighted areas—in a way that diverts money to the state.

Poway's city manager said she wasn't surprised about the approved budget as the state has "raided" municipalities for "many, many years.”

Though the League of California Cities—an association of city officials—plans to sue the state by the end of the week over the two redevelopment bills, many cities made moves in an attempt to protect as many local dollars from Brown's initial proposal to completely eliminate redevelopment agencies.

Despite his concerns about the redevelopment issue, Tanaka said the city has yet to find a part of the budget that “is uniquely negative toward Coronado.” He said city officials will be taking a closer look at the plan to be sure.

Like city leaders, Republicans who represent local communities aren't happy with the budget. 

Sen. Joel Anderson (R-Poway) blasted Democrats for passing the budget with a simple majority, saying the spending plan “throws the most vulnerable, the weakest and our children under the bus.”

Assemblyman Nathan Fletcher (R-San Diego) also was dissatisfied, but said he was relieved the budget didn't include a tax hike.

“While I am disappointed we missed an opportunity to reform our state’s chronically troubled budget and that Democratic lawmakers rejected a budget that would have fully funded education without raising taxes, I am pleased that small businesses and families across California will see some tax relief starting July 1," Fletcher said in an emailed statement.

Though the budget was approved by Democrats, the party hasn't expressed complete contentment with the results, as their original budget was vetoed by the governor on June 16.

In a statement, Senate Majority Leader Darrell Steinberg said, “This is not a budget to celebrate. There’s a lot of pain here for a lot of people.”

But Assemblyman Ben Hueso (D-San Diego), who also represents Coronado, backed Brown in a statement, calling the budget  “a balanced and comprehensive spending plan for the beginning of the fiscal year that it is a win for schools, local governments and businesses throughout the state.”

The budget addresses a deficit that once topped $26.6 billion and passed both houses without a Republican vote. This is the second time in two decades that the budget was adopted on time and is largely due to Proposition 25, which was approved by voters in November, that allows lawmakers to pass a no-tax-hike budget with a simple majority.

To read the budget bills, visit the Legislature's website here.

Story reported and written by Hoa Quach; Jennifer Vigil contributed reporting.