The Death of California Redevelopment Areas: Did the State Get It Right?

In 2012, California ended Redevelopment Areas (RDAs), which was the state's primary program for tax increment financing. The state justified its actions based on budgetary issues and lack of evidence as to the program's effectiveness. Examining exact U.S. Census Bureau tract-level data and in comparison with cohort tracts from 1980 through 2000, this study finds that California RDAs established in the 1990s resulted in minimal positive economic impacts to RDA areas, suggesting that the state may have been correct. Beyond the California issue, this study contributes to the literature by possibly being the first study to examine the general economic impacts of tax increment financing areas. [ABSTRACT FROM AUTHOR]