Spend It While You’ve Got It

Last week, California Governor Jerry Brown said that the state’s financial problems are so bad that it should end urban-renewal subsidies. So the state’s urban-renewal agencies have selflessly stepped up and turned over surplus funds to the state to help it solve its financial problems.

Just kidding. Instead, redevelopment agencies all over the state have decided to blow their budgets by committing as much of their funds as possible before the state can take control.
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This is no surprise and it shouldn’t dampen efforts to revoke urban-renewal powers. Because most of today’s urban-renewal tax revenues are dedicated to paying off urban-renewal bonds, the greatest benefit from ending urban renewal will be in stopping the sale of any further bonds.