AGENDA ITEM NO. 2
Meeting Date: April 13, 2004
Subject/Title: Approve payment to Contra Costa County of the Agency’s
State-mandated shift of property tax revenues to the Educational Revenue
Allocation Fund for 2003-04 in the amount of $163,985.
Prepared by: Gina Rozenski, Redevelopment Manager
Submitted by: Gina Rozenski, Redevelopment Manager
Approve payment to Contra Costa County of the Agency’s State-mandated shift
of property tax revenues to the Educational Revenue Allocation Fund for
2003-04 in the amount of $163,985.
Chapter 1127, Statues of 2002, required redevelopment agencies to shift $75
million in property tax revenues to schools and colleges for the 2002-03
fiscal year. While not receiving the same ink as other State budget cuts,
the tax revenue shift to Educational Revenue Allocation Fund (known as “ERAF”)
was one of the tools used to “balance” the State’s 2002-03 budget. In other
words, redevelopment agencies paid $75 million to schools in lieu of the
State making a corresponding payment to schools from its general fund The
Brentwood Redevelopment Agency paid its share of $84,158 for the mandated
ERAF shift in 2002-03.
The proposed 2003-04 State Budget included a cut of $250 million from
redevelopment agencies to ERAF. However, after nine months of budget
uncertainty, the State Senate passed a budget that included a reduced $135
million ERAF shift of property tax revenues. The Brentwood Redevelopment
Agency’s share of this shift for 2003-04 is $163,985. See attached September
22, 2003, letter from the State Department of Finance.
The Agency’s 2003-04 budget (Debt Service Fund 303) included an ERAF shift
in the amount of $280,000, in anticipation of the $250M state-wide shift.
With the reduction to a $135M state-wide shift, the Agency has the budgeted
funds to pay our share of the 2003-04 ERAF shift in the amount of $163,985.
Attachment: 9/22/03 State Department of Finance letter