California State Treasurers "Dodged a Bullet" by Stabbing City Redevelopment Funds
pic credit: mtts
No worries if you've been dying for some state-in-the-crapper news, the California budget crisis is back.
State tax collections plummeted unexpectedly in April, wiping out months of steady gains that legislators hoped would ease their budget troubles and restore California's economy faster than experts predicted.
Such hope is now fading fast.
Revenue for April, the biggest revenue month because it is when most Californians pay their taxes, lagged projections by nearly 30% — roughly $3 billion, according to state officials. The drop was steep enough to erase improvements recorded in each of the four previous months.
Economists and finance officials are scurrying to analyze the data to determine what caused the April swoon. Some suspect it sprang from new laws that changed the rhythm of tax payments. It could also reflect the growth in unemployed residents eligible for refunds.
The April collections came almost entirely from personal income taxes. Most corporate and sales taxes have not yet been reported. If they, too, come in below projections, the state's budget problem would grow worse.
NOW, here is what I would like to know: how does this affect the SFMTA plan to use state money (promised to them just like the last state money they were promised that they never got) to save their budget problems?
Don't worry, California has a plan: stealing from broke municipalities by strong-arming their development funds.
Contra Costa Times:
Local redevelopment agencies will be forced to relinquish funding slated for community projects to the state Monday, after a California appeals court decided against a request for a temporary stay of the funds Friday.My own homebase of broke ass San Francisco will cough up $28.8 million to the state.
Earlier this week, Sacramento Superior Court Judge Lloyd Connelly upheld a bill passed by the Legislature last year, which requires redevelopment agencies to hand over more than $2 billion in funding to help close California's budget deficit.
The governor's office feels okay about the whole deal. “We dodged a bullet,” said Schwarzenegger’s spokesman, Aaron McLear. “This would have added $2 billion to our deficit.”