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a $13 billion deficit over we The decision means schools next 18 months, and a rulingcan expect morethan$1billion against the state would haue each year in additional prop- widened the shortfall. ".� erty tax revenues, but a fitgl The governor proposed c' - figure won't be released until solving redevelopment ager Brown presents his spending plan next month,said Brown's cies in January,then transom ring theirprope'rtytax reve a finance department spokes- of about$5 billion a year to't'Q man,H.D.Palmer. cities and counties that Cron- Local government officials trolled the agencies. say it does not make sense for They would then use tie the state to eliminate redevel- opment agencies, which con- ebt a to repay redevelopnd distribute moneyment tribute$2 billion a year in eco-da *ko nomicactivity, debt cities, counties, special dis,- tricts and schools' savin ;fm They say because the Legis- state about $1.7 billion this g -r lature did not intent to elimi- nate local economic develop- year. - ment efforts, agencies should I State lawmakers inserte&a i compromise in last summer?s be reshaped. budget that allowed the ager "We do know that the gover- nor will be a tough nut on this, made additional payments-nf but at the end of the day, his about $400million annuaf primary challenge is to help to schools and other local sg - balance the state budget,"said vices starting next year. The Jim Kennedy, interim execu- court invalidated that piece of tive director of the California legislation,calling it"flawed." Redevelopment Association, The court opinion was writ- which filed the lawsuit along ten by Justice Kathryn Mickle with the League of California Werdegar and signed by five Cities. otherjustices. San Diego Mayor Jerry The seventh, Chief Justice Sanders called it a "sad day' Tani Cantil-Sakauye, agreed while San Jose City Attorney but wrote a separate opinion Richard Doyle called the sul- saying she would have up- ing a disappointment bilt not a held the compromise law that total surprise,given the judges' would have permitted agencies reactions during arguments in to continue if they shared rev- November. enue.