Governor's Revised Budget Takes Low-Mod Money and Settlement Funds for Legal Aid, Counseling
The Governor released his May Revise today, the annual budget revision released after April 15 tax receipts reveal the true revenue picture. With the budget deficit ballooning to $15.7B, $6.5B more than originally projected, the news was stark.
For housers, the looming fear that unencumbered RDA housing dollars would be swept was finally confirmed. The Governor's budget proposed to sweep an estimated $1.1 billion in housing funds set aside by former redevelopment agencies to construct housing for low-income Californians. The Dept. of Finance (DoF) contends that the money is available to be redirected, because the funds had not yet been committed to a specific project. The funds proposed to be swept would have constructed an estimated 10,000 new affordable units for low-income folks. The $1.1B figure represents DoF's revised estimate of the housing balances, previously pegged at between $1.4B and $1.1B.
The Governor's proposal leaves in doubt two pending measures supported by housers—AB 1585 and SB 654—that would protect the housing dollars. Senate leadership—foreshadowing the Governor's proposal—has suggested over the past few weeks that the dollars might have to be swept for housing. Advocates will continue to press their case for preserving the housing dollars.
The Governor's revised budget also proposes to take the $410 million in discretionary funds that California will receive under the Multi-State Mortgage Settlement and use it to fund various General Fund funded programs. At least half of those funds had been projected by Attorney General Kamala Harris to be distributed to housing counselors and legal services programs offering counseling to homeowners.