REDEVELOPMENT IN CALIFORNIA: THE DEMISE OF TIF-FUNDED REDEVELOPMENT IN CALIFORNIA AND ITS AFTERMATH

California was the first state to embrace the use of tax increment financing (TIF) for redevelopment and the first state to abandon it. Both the rise and fall of redevelopment are attributable to the fact that cities and counties sponsoring redevelopment could pledge not just their own share of the property tax increments from redevelopment project areas, but also those of the other taxing entities including schools and special districts. At a time of a projected state deficit of $25 billion, Governor Brown seized the political moment to put an end to redevelopment and the $5 billion a year in property tax revenues he felt would be put to better use for education and other public needs. This paper describes the unique setting and subsequent events leading to the end of TIF in California and its aftermath.