Cal. Redevelopment Assoc., et al. v. Matosantos, et al.

The Association sought extraordinary writ relief from the court, arguing that two measures intended to stabilize school funding by reducing or eliminating the diversion of property tax revenues from school districts to the state's community redevelopment agencies, was unconstitutional. At issue was whether the state Constitution (1) redevelopment agencies, once created and engaged in redevelopment plans, have a protected right to exist that immunized them from statutory dissolution by the Legislature; and (2) redevelopment agencies and their sponsoring communities have a protected right not to make payments to various funds benefiting schools and special districts as a condition of continued operation. Answering the first question "no" and the second "yes," the court largely upheld Assembly Bill 1X 26 and invalidated Assembly Bill 1X27. The court held that Assembly Bill 1X 26, the dissolution measure, was a proper exercise of the legislative power vested in the Legislature by the state Constitution. The court held that Assembly Bill 1X 27, the measure conditioning further redevelopment agency operations on additional payments by an agency's community sponsors to state funds benefits schools and special districts, was invalid.