Stick em' up!!
Okay, here goes... the state wants to "borrow" some of our money. Without asking permission first, of course. In the proposed budget agreement, "the state would borrow $1.9 billion in property taxes and take $1.7 billion from redevelopment agencies."
I'll do my best to explain, but keep in mind it's still cloudy, even for those who have actually SEEN the budget proposal.
The $1 billion in transportation funds was taken off the table. WHEW! That’s at least one bit of good news.
So the state will borrow some of our money, then we will borrow money to replace the money they borrowed. They will pay back the money, and they will pay the interest accrued. (the borrowing will be in the form of short-term bonds) Are you confused yet? No? Okay, I'll keep going.
They also want to take RDA money, but I believe they will grant agencies a time extension of their housing requirements by law.
Based on the proposed state budget plan, initial estimates indicate that the City would be required to give up $684,923 in property tax. Not exactly chump change is it?
How much will be taken from the RDA remains to be seen.
I should point out that the first round of proposals were FAR more scary than what we have now. Not that I like what we are faced with now. I just thought I'd point out the unseemly potential of some members of our state legislature.
I should also point out that my facts and figures are preliminary from a city budget perspective.
Now would be a great time to send an email to state elected officials to let them know how you feel about this. Go to my home page, http://www.talk2melissa.com/ and click on the Local, State and Federal Resources link. From there you can find all of the representatives and how to contact them.
