Despite intense lobbying from supporters of redevelopment, Senate Bill 659, sponsored by Sen. Alex Padilla (D-Los Angeles) appears headed for defeat. Senate President Pro Tem Darrel Steinberg (D-Sacramento) yesterday told the Sacramento Bee, "It's not going to happen." 

With only a few days to go before the February 1 deadline to dissolve the state's redevelopment agencies, the Department of Finance has published a website describing the dissolution process as mandated by Assembly Bill X1 26. The site is intended to answer a host of questions that have arisen among many agencies and cities throughout the state. 

Last week bond rating agency Moody's took California's redevelopment bonds down a notch, and today fellow rating agency Fitch is expressing similiar concerns. 

Judging by the likes of Apple, Google, and Chez Panisse – to say nothing of the relative stability of housing prices -- the San Francisco Bay Area might not seem like the most likely recipient of an economic planning grant. But the federal Department of Housing and Community Development thinks otherwise.

Credit rating agency Moody's Investors Service downgraded by one notch all California tax allocation bonds rated Baa2 and above. Moody's is monitoring all other redevelopment bonds and may issue a downgrade in the future. 

Sen. Alex Padilla (D-Los Angeles) has introduced legislation that could give California's redevelopment agencies if not a reprieve then at least a stay of execution. Senate Bill 659 would push the dissolution date from Feb. 1 to April 15 in order to allow cities and agencies time to put their affairs in order -- and, presumably, to allow the Legislature to deliberate on a replacement for redevelopment before the agencies are dismantled and their employees laid off.

It's taken me a few days to absorb the California Supreme Court decision in California Redevelopment Association v. Matosantos, which effectively killed redevelopment in California. Although I was a longtime critic of isolated cases of abuse, it believe it was a huge mistake to relegate the entire institution to the glue factory of failed policies.

In releasing his proposed 2012-13 budget last Thursday, Gov. Jerry Brown also proposed a major reorganization of state government that would separate transportation and housing at the same time Brown's policy thrust is intended to link the two closer together.

In particular, Brown has proposed a major restructuring of the Business, Transportation, and Housing (BTH) Agency that would have here parts:

Amid all the debating and litigating around redevelopment's demise, it's sometimes easy to forget what, exactly, Californians are fighting over. But this week's premature release of Gov. Jerry Brown's 2102 budget offers a handy reminder: it's money. 

The California Supreme Court killed redevelopment this morning, but that doesn't mean it's dead.

At first glance it would seem as though redevelopment agencies have no bargaining power at all. After all, it's hard to imagine a weaker position than a state Supreme Court ruling saying you don't exist.