SACRAMENTO—Among all the hoopla surrounding California’s $143-billion-85-days-late budget—the state is faced with a $15.2 billion budget deficit, and Gov. Arnold Schwarzenegger recently warned that the state could be forced to seek $7 billion in emergency federal loans— may be yet another hand waiving objection.

John Shirey, executive director of the California Redevelopment Association, believes local governments will be hit with an effective “double whammy” by the $350 million earmarked in the budget as a “redevelopment takeaway.”

This takeway, as Shirey describes it, is something he believes will impact developers and commercial projects in redevelopment areas, and Shirey says the CRA is contemplating filing a law suit to stop what it believes is an unconstitutional move.

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