Redevelopment: allocation of property tax: passthrough payments.

Existing law dissolved redevelopment agencies and community development agencies, as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law requires the successor agency to dispose of all remaining assets and terminate its existence within one year of the final debt payment and requires any passthrough payment obligations to cease at that time. On and after May 1, 2012, existing law requires the county auditor-controller to distribute to the taxing entities, including school entities, all property tax revenues that were associated with the payment of a recognized obligation that has been paid off or retired. Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenues to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. Existing law establishes a public school financing system that requires funding for each county superintendent of schools and school district to be calculated pursuant to a revenue limit, as specified, and requires the revenue limit and general-purpose entitlement for a school entity to be composed of, among other things, certain types of revenues, including ad valorem property tax revenues, and that additional amount of revenues in the form of state aid, that is necessary to fully fund the entity's revenue limit. This bill would provide that a specified amount of ad valorem property tax revenues allocated to a school entity, defined with reference to former passthrough payments made by a redevelopment agency, will not be included as ad valorem property tax revenues counted against the revenue limit for that entity.