Today's 6-1 California Supreme Court opinion in California Redevelopment Association v. Matosantos, No. S194861 (Dec. 29, 2011) brings to mind two of our favorite loanwords: schadenfreude (deriving pleasure from the misfortune of others) and schlimmbesserung (to worsen by improvement).
The first because we can't say we're crying much about the takedown of California redevelopment agencies, which are collectively probably the largest abusers of eminent domain in the state, and the second because the track record of these agencies in actually accomplishing their stated goals of economic development is woefully sparse.
As we noted here, in Matosantos, the court concluded the state legislature could eliminate redevelopment agencies without violating the California Constitution. While this is a significant victory for property rights advocates, we won't be counting our chickens just yet. Here are a few things to keep in mind:
- The California Supreme Court did not drive a stake through the heart of redevelopment agencies. It did not conclude they are illegal and unconstitutional eminent domain abusers, or simply out of control. It simply held that the legislature has the power to dissolve them. What the legislature giveth, the legislature may taketh away.
- Which means that they could be be back: what the legislature taketh away, the legislature may giveth back, we assume.
- Indeed, the machinations are already beginning. As the League of California Cities notes: "In the wake of today's ruling by the California Supreme Court upholding the elimination of redevelopment agencies, the California Redevelopment Association (CRA) and League of California Cities (League) vowed to work with state legislators immediately to develop legislation to revive redevelopment in order to protect local communities, job creation and our economy."
- The redevelopment agencies are already claiming that the ruling may affect police and fire services: "Many cities have been quietly using redevelopment funds for some city services for years and Kosmont [who advises many cities on redevelopment and budgetary issues] predicted that some will have to abolish their own police and fire departments, and pool services. Wow, it took even less time than we anticipated for that meme to start up.
- In other words, the redevelopment-industrial complex is well-entrenched in California, so don't expect it to go down without more of a fight in a passably-friendly forum, the California Legislature. Remember, the redevelopment agencies even have their own own lobbying group. We imagine that if the State Capitol were open, its halls would already be buzzing.
- Remember that this was not a principled fight by Governor Jerry Brown (v.2.0) and the legislature to abolish redevelopment agencies, but rather a huge money grab to help add additional ballast to California's listing economy. The redevelopment agenices are sitting on a huge chunk of money which the administration in Sacramento covets. It was pitched by one side as a lifeline for the troubled school system, and by the other as a theft of "their" money. But it's not either side's money, really, it's yours.
- Have the taxpayers and property owners of California come out on top? As we noted above, this was a fight between which arm of government gets to take private property and keep public money. Assuming that the legislature and Brown administration -- having now achieved the upper hand -- do not strike a deal with the redevelopment agencies and that they are truly gone, it doesn't mean that redevelopment won't occur.
So while we celebrate today's victory, we're still holding our breath.
