Local Schools Reap Benefits From Redistributed Redevelopment Funds

More than $20 million once dedicated to local Redevelopment Agencies has instead flowed into accounts of public entities in Santa Cruz County since Gov. Jerry Brown abolished Redevelopment Agencies two years ago.

The end of Redevelopment Agencies was fraught with controversy. Many cities, including Watsonville, lobbied hard to maintain the agencies because the organizations helped cities draw in new businesses through loans and tax breaks, while supporting existing stores and industry through beautification projects and infrastructure improvements.

Redevelopment agencies financed their activities through a share of the increases in property tax realized over the life of a project area, money that is now being divided among other public entities.

Statewide, $4 billion was to redirected cities, the county, schools and special districts when Redevelopment ended. The state Department of Finance released a report earlier this month detailing where the monies had been sent.

In Santa Cruz County, K-12 schools saw the largest influx to their coffers, with $10.65 million in funds distributed to school districts in the area. Community colleges, namely Cabrillo, received nearly $1.65 million and the county itself got almost $1.2 million.

In Watsonville, almost $3 million in residual funds were redistributed, according to data from the state Department of Finance published by the Los Angeles News Group. The city got a payment of $711,633—the second-highest of any city in the county.

Check out the chart above to see the other public entities that benefited from  Watsonville's $3 million redistribution, and how it compares to the rest of the county.