For all the talk of the “Fiscal Cliff” in Washington, D.C. Orange County, and 19 O.C. cities and the are facing their own version of a fiscal cliff that could cripple their general funds. The state Department of Finance has demanded payment of $268 million in unspent redevelopment agency funds targeted for low- and moderate-income housing.
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In a decision that could spell the end of redevelopment agencies in California, the state Supreme Court ruled on Thursday that the Legislature had the authority to seize $1.7 billion in local redevelopment money to help balance the budget, and struck down a related bill that would have allowed redevelopment agencies to continue operating if they agreed to turn over a large chunk of their funding to the state.