Counties Battle Their Own Budget Deficits
By Paul McIntosh, Executive Director
pmcintosh@counties.org
It is widely known that the State of California has an enormous budget deficit of more than $8 billion. Speaking before the California District Attorney’s Association on April 24, Governor Schwarzenegger said he expects the deficit to be at least $10 billion when he releases his budget revision on May 14. To date, discussions and hearings have primarily focused on spending reductions of programs. Many of these are county programs or programs that counties operate on behalf of the State.
As the Legislature begins to craft a solution to the State budget deficit, one message cannot be lost: counties face their own budget deficits as well. CSAC staff continues to communicate to the State Legislature about how the recent economic downturn has significantly impacted counties across the state and how many counties face budget deficits of their own. Decreases in core revenue sources, including property taxes, sales taxes, fees, and interest earnings are down – and in some cases, significantly.
[FULL STORY]
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