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January 18, 2011 Stale Legislator Address City, State, Zip ELIMINATING OR CURTAILING REDEVELOPMENT WILL DRASTICALLY REDUCE REVENUES AND DAMAGE THE ECONOMY OF SAN LEANDRO • Dear As local elected officials, we understand the difficulty of passing a budget in these times of limited resources. Those of us in local government have been forced to make difficult decisions to bring our own budgets into balance. However, even in difficult times, the Governor's proposal to eliminate redevelopment agencies is short- sighted public policy that will damage our economy. The proposal to eliminate redevelopment: • Violates the will of the voters by taking local funds that were protected by Prop 22; • Will dramatically reduce San Leandro's revenue; • Will curtail the most effective source of economic development stimulus; • Will kill the state's leading program to provide affordable housing; and • Will harm our efforts to grow responsibly by focusing on urban and infill development. The proposal directly contradicts the expressed will of the voters. In November 2010, voters overwhelmingly approved Proposition 22, amending the Constitution to forbid the state from redirecting local revenues. Proposition 22 prohibits the state from requiring a redevelopment agency to remit property tax to or for the benefit of the state or any other jurisdiction. Whether or not the current proposal violates the Constitution, it is a clear violation of the intent of the recent amendment and the will of the voters. The proposal will have a catastrophic impact of the City of San Leandro. Despite assertions that the Governor's proposal will return funding and control to local governments, the elimination of Redevelopment will result in a drastic reduction in property tax revenues for the City of San Leandro. San Leandro, which receives a mere 12% of property tax revenue, will be particularly hard hit by this redistribution. The proposal will cost San Leandro upwards of $5 million per year, eliminating our ability to provide business assistance, economic development, and affordable housing services.