State Auditing Redevelopment Agencies

Sacramento, CA — State Controller John Chiang is calling for the audit of 18 redevelopment agencies across the state to find how well they comply with laws governing their activities. Governor Jerry Brown is hoping to phase out redevelopment agencies as a way to reduce the $25 billion deficit.

“The heated debate over whether RDAs are the engines of local economic and job growth or are simply scams providing windfalls to political cronies at the expense of public services has largely been based on anecdotal evidence,” says Chiang. “As lawmakers deliberate the Governor’s proposal to close RDAs and divert those funds to local schools and public safety agencies, I believe it is important to provide factual, empirical information about how these agencies perform and what they bring to the communities they serve.”

The agencies selected for Chiang’s review are primarily in the highly populated areas like Los Angeles, Sacramento, Fresno and the Bay Area.