State controller looks into redevelopment agencies

Auditors are reviewing 18 of them, including L.A.'s Community Redevelopment Agency, to see how they're spending money. From Controller John Chiang's press release:

"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," Chiang said. "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 reviews will look at how the redevelopment agencies define a "blighted" area, whether they're "passing through" payments to schools, and how their officials and employees are being paid. Could be interesting...


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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