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AB-2493 Redevelopment dissolution: housing projects: bond proceeds.(2013-2014)

Bill Status
Bloom (A)
Achadjian (A) , Alejo (A) , Brown (A) , Lara (S) , Lieu (S) , Lowenthal (A) , Mullin (A) , Nestande (A) , V. Manuel Pérez (A) , Skinner (A) , Waldron (A)
Redevelopment dissolution: housing projects: bond proceeds.
An act to amend Sections 34176 and 34191.4 of the Health and Safety Code, relating to community redevelopment.

Type of Measure
Inactive Bill - Vetoed
Majority Vote Required
Fiscal Committee
Non-State-Mandated Local Program
Non-Tax levy
Last 5 History Actions
Date Action
09/29/14 Vetoed by Governor.
09/10/14 Enrolled and presented to the Governor at 4 p.m.
08/28/14 Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 52. Noes 23. Page 6680.).
08/28/14 Assembly Rule 77 suspended. (Page 6667.)
08/28/14 In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77.
Governor's Veto Message
To the Members of the California State Assembly:

I am returning Assembly Bill 2493 without my signature.

This bill permits successor agencies and housing successors of former redevelopment agencies to use proceeds derived from bonds issued between January 1, 2011, and June 28, 2011, if the project is consistent with a sustainable communities strategy or reduces greenhouse gas emissions. Expenditure of the bond proceeds would be subject to approval by the Department of Finance (DOF).

I applaud the author's efforts to craft legislation to target specific projects for funding from 2011 bond proceeds. Funding for this measure, however, would come at the expense of lost property tax dollars to cities and counties that chose not to incur debt during this period, as well as special districts and schools. The cost to the general fund to backfill schools could be significant, to the tune of $500 million, at a time when the state is still recovering from deep recession.

I recognize that the cost to local governments to defease these high interest rate bonds is significant. Therefore, I am directing the Department of Finance to develop a plan to address the outstanding bond debt of these agencies.


Edmund G. Brown Jr.