Two bills in the California assembly, AB1-26 and AB1-27, propose to eliminate redevelopment agencies unless they contribute a total of $1.7 billion in tax money generated by new developments to the state, to be used for schools and public safety. Governor Jerry Brown has been a proponent for dismantling the state's roughly 400 local redevelopment agencies, citing examples of mismanagement of redevelopment funding. 

On Wednesday, the California legislature approved billions of dollars in cuts to state services for the upcoming fiscal year, including welfare, care for the developmentally disabled, mental health and early childhood education, in an attempt to reduce the state's $26 billion budget shortfall. 

Governor Jerry Brown released his 2011-12 Budget last month. The budget proposes deep cuts in state service ($12.5 billion), a shift in some state programs to local control and a proposal to extend tax increases to generate $12 billion in revenue.