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nor a $13 billion deficit over acan expect more than$1 The decision means schools next 18 months, and a ruh'"ig each year in add do albillion prop- against the state would have erty tax revenues, but a firth widened the shortfall. TTW__ won't be released until The governor proposed solving redevelopment age Brown presents his spending plan next month,said Brown's cies in January,then trans€- finance department spokes- ring their property tax reveFme man,H.D.Palmer. of about$5 billion a year to� _ Local government officials cities and counties that coin say it does not make sense for trolled the agencies. the state to eliminate redevel- They would then use opment agencies, which con- money to repay redevelopment tribute$2 billion a year in eco- debt and distribute money+0 nomic activity cities, counties, special die- They say because the Legis- tricts and schools, saving OW lature did not intent to elimi- state about $1.7 billion this nate local economic develop- year. "'� ment efforts, agencies should State lawmakers inserted 'be reshaped. compromise in last summers "We do know that the gover- budget that allowed the ate- nor will be a tough nut on this, cies to keep operating if the but at the end of the day, his made additional payments:.-of primary challenge is to help about $400 million annua balance the state budget,"said to schools and other local sg'r- Jim Kennedy, interim execu- vices starting next year. T1Ye tive director of the California court invalidated that piece of Redevelopment Association, legislation,calling it"flawed." which filed the lawsuit along The court opinion was writ- with the League of California ten by Justice Kathryn Mickle Cities. Werdegar and signed by five San Diego Mayor Jerry other justices. Sanders called it a "sad day" The seventh, Chief Justice while San Jose City Attorney Tani Cantil-Sakauye, agreed Richard Doyle called the rul- but wrote a separate opinion ing a disappointment bdt not a saying she would have up- total surprise,given the judges' held the compromise law that reactions during arguments in would have permitted agencies November. to continue if they shared rev- enue.