Interesting read. Excerpts:

Though little understood by the public, the state's nearly 400 active redevelopment agencies are allowed to collect property taxes that would otherwise go to schools and counties. Often, the agencies partner on projects with private developers, providing subsidies or donating land. The agencies mostly are run by city council members, and thus are a considerable source of power for them.

"How do you justify maintaining a system that takes billions of dollars from schools, law enforcement and other vital services and uses that money to subsidize developers?" Tom Dresslar, a spokesman for state Treasurer Bill Lockyer, asked.