How Do You Steal A Billion Dollars In Plain Sight?

How do you steal a billion tax dollars in plain sight?

If you're Mayor Villaraigosa, you simply have your political appointees enter into a sham "contract" between the City and one of its agencies, called the CRA, whereby the agency is "indebted" to pay the City a billion dollars.

That way, when Governor Brown tries to cut off funding for the agency to balance the State's budget, you say, "Oh! Sorry! No can do. You see, the agency has a contractual obligation to pay that money to the City."

Yeah, right. Good luck with that one, Tony. I'll be surprised if even L.A.'s corrupt City Council wants to take sides with Villaraigosa and the Billionaire's Club against Governor Brown and California's taxpayers.

Here is how the crooks in suits at the CRA try to "spin" the rip-off using their finest gobbledygook in their memorandum to the City Council:

SUMMARY

Under the Agreement, CRA/LA will enter into a contract with the City providing that, among other things, the City will perform certain eligible activities on behalf of the CRA/LA including installation of publicly-owned capital improvements, public improvements, the creation and preservation of affordable housing projects and other redevelopment projects located throughout the 31 adopted Redevelopment Project Areas. The contemplated activities are beyond those normally provided by the City and are specifically intended to assist CRA/LA in addressing the removal of blight and prevention of the recurrence of blight. The obligation to pay tax increment, as set forth in the Agreement, shall constitute an indebtedness of the CRA/LA for the purpose of carrying out the Redevelopment Plans for each of the affected project areas. 

Did you see it? The key words are, "shall constitute an indebtedness of the CRA/LA."
Anyhow, if you enjoy original source materials, here they are for your reading enjoyment:

• Click here for the CRA's revised memorandum dated 1/14/11;
• Click here for the CRA's revised attachment of projects as of 1/18/11. 
• Click here for the City Council's file on this billion-dollar ripoff (i.e., Council File No. 11-0086).