Deadnafornia

Lot's of news. Three must read articles. All from "liberal" sources which tells you just how serious things are getting. First up the LATimes top story:

Cities brace for revenue losses as property values continue to drop

Even with the decline in home values, the property tax base in five Southland counties grew last year thanks to continuing sales and the completion of construction begun during the 2003-2006 building boom. But assessors in those counties said they have reduced the value of more than half a million properties and expect to make deeper cuts to their rolls by the summer.

This is bad news for local governments that have been relying on property tax proceeds to help make up the shortfall from reduced incomes and spending in their areas. Already, cities and counties across California have been freezing jobs, imposing work furloughs and pay cuts, postponing repairs and reducing some public services.

The next two are from Calitics. Readers are urged to vist there often for some excellent "inside baseball" for California issues. Just keep your liberal bias filter set to "11".

Statewise, Yeah, We're Still Well And Truly Screwed

John Chiang: We always borrow at the beginning of the year, 25 out of the last 26 anyway and then in April we make up the difference. But this year we walk in with weakness into the next fiscal year. There are less tools in the tool kit. We'll need a massive RAN or RAW (Revenue Anticipation Warrant).

Remember these last budgets borrow $16.5 billion from (state) special funds to backfill the general fund. So if we have any emergency in the state requiring aid from one of those special fund departments, the state is in trouble. Over 1,100 special funds in the state and we borrowed from over 650 of them. Part of this last budget solution gives us the ability to borrow another $2 billion more. The governor's budget has us borrowing $11 billion from special funds over the next 18 months.

So we're going to have to do some outside borrowing for the next fiscal year. Period.

Localwise, The Next Budget Crisis: City and County Governments

LA's budget gap might hit $1 billion, owing to factors largely outside of city government's control. Monterey County faces $163 million in deficits over the next three years even if cuts in salaries, benefits, and services are made. County health centers may close, cuts to already-stressed hospitals are likely to be made, and of course, more people will be put out of work.

As predicted here oh so very long ago raising taxes will not result in increased revenues.