Compromise in the works to save redevelopment agencies

There are signs Friday night that redevelopment agencies across the state are not going to get the death penalty after all. It appears a compromise is in the works. KUSI's Steve Bosh reports on the latest details.

Two legislative committees passed a modified version of Governor Brown's budget Friday without debating redevelopment, even Democrats were talking about an alternative to killing off the agencies.

These legislators have heard the strong opposition coming from their home cities and towns where redevelopment agencies are creating jobs and back filling funds for city services.

Redevelopment has siphoned property taxes from school districts to revitalize blighted neighborhoods. If the agencies are wiped out, that money goes back to the state where half of it would be distributed to schools. Bernie Rhinerson of San Diego Unified says city schools right now get 4.5-million dollars a year from the city's redevelopment agency.

The word is the governor will send back the money to all school districts but how that will be done is filled with uncertainty. That will be determined by the language in the bill as it makes its way thru the legislature.

Another major concern for San Diego Unified is the prospect of a shell game, meaning any new funds from the state have to be in addition to Prop-98 funding for education.

This uncertainty from school districts and the strong opposition from mayor's across the state have Democrats searching for a compromise. Support is building to keep these agencies in place.

Some lawmakers are even proposing alternatives that would allow these agencies to continue funneling some of their tax money to local services which they are not permitted to do now.