Councilman Says S.C. in 'Deep Trouble' with Brown Budget

Though it is unclear exactly how much cash the city of San Clemente will lose under the new state budget package, it’s likely the city will take a huge hit.

City Councilman Jim Dahl said finance staffers and the administrators were getting together to figure out how to address the coming shortfalls,

The state budget will take away big chunks of the redevelopment agency budget, about $2 million of which was recently spent to beautify the Pier Bowl area and other projects. The agencies in cities helps pay to remove blight and create affordable housing, many times in partnership with private developers.

The budget signed into law by Gov. Jerry Brown requires that city redevelopment agencies—known as RDAs—spend a big portion on schools and public safety. He has criticized agencies in past months for being little more than slush funds for developers, according to the Associated Press.

The San Clemente Redevelopment Agency’s approved budget for 2011-12 is $3.75 million, and the total city budget for 2011-12 is $114 million.

Dahl said that the city would also take a hit from the loss of vehicle license fee money, another provision under the new budget.

“We’re in deep trouble,” Dahl said. “We also have the loss of [vehicle] license fees, too—$190,000.”

City Manager George Scarborough said cities are still trying to figure out how to handle the problem, considering the legislation is so new.

“We don’t have the numbers yet,” he said. “It could be as much as 50 percent [of the RDA budget], but we don’t know.

The city budget will have to be amended in light of the new state budget, officials said.

The city will have to be creative in amending it, as well; there is only a

There is some hope for cities to hang on to the money, however. The group representing California municipalities, the League of California Cities, has pledged a lawsuit against the state, saying provisions of the new budget are unconstitiutional.

"This budget represents exactly the sort of gimmicks and nonsense Gov. Jerry Brown vowed to stop,” said Chris McKenzie, League executive director. “This two-bill scheme to eliminate redevelopment agencies in exchange for so-called 'voluntary' payments is nothing short of extortion."

Dahl said San Clemente is not a signatory on the pending lawsuit but is a member of the League.