Thursday, March 10, 2011

California redevelopment agencies misuse tax money

Money was apparently misused last year by 18 redevelopment agencies, according to a California State Audit that was released on Monday.

Redevelopment agencies in California receive roughly $5.5 billion a year to beautify areas and build low to moderate income housing, and several of these so-called agencies claim that they produced jobs last year.

$5.5. billion of tax payer money, has nothing to do with actually creating jobs. Far from it.

According to an article released by Southern California Public Radio, the State Controller's office found that 10 out of the 18 agencies failed to verify their claims that they "created" jobs; failed to provide transparency and keep proper accounting records and misused money that was supposed to be spent on building housing. Instead, this money went to cover administrative salaries, in some cases more than 20% alone. 

The head of the California Redevelopment Association, John Shirey, calls the audit "politically motivated". What's motivated about this Mr. Shirey is that many public workers simply used millions of dollars on themselves, without any consideration to the people that are actually paying their salary and to create work in a state agency, designed to build public housing.

As for the creation of jobs, Shirey insists California Redevelopment has created hundreds of thousands jobs. Yes, to be sure. Hundreds of thousands of jobs to pay the salaries to redevelopment freeloaders. Yet, nothing has been said about the creation of private sector jobs in the State of California.

Maybe Mr. Shirey doesn't realize that California is fundamentally bankrupt and has a $25 billion budget deficit and our unemployment is 12.4%. Governor Brown has called for cuts in discretionary spending. I wonder if that would have included this outrageous junket by redevelopment workers of misusing tax money to pay themselves.

I'd be curious to know why Mr. Shirey believes these entitlements are okay for public workers to misuse tax money while the State continues to suffer everyday from budget and unemployment problems.

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