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Sales Tax Revenues are down, on average, by 14%--even with higher rates.
Pension "contributions" by local government are doubling and tripling.
Local government is mostly owned and controlled by unions, so premium pay and too many employees are on the payroll.
Bottom line: "California's local governments have used up the least painful of budget options and now must make difficult choices, almost surely centered on spending cuts, Doppelt added.
"For many municipalities in California we're at a point where cuts will impact service delivery," she said, noting they may not be enough to stave off warnings on credit ratings.
Downgrades may follow if reserves are drawn down sharply, raising the borrowing costs of local governments and adding to financial strain."
Government will grow the California Great Depression.
Get angry or get poor.
More...
Pension "contributions" by local government are doubling and tripling.
Local government is mostly owned and controlled by unions, so premium pay and too many employees are on the payroll.
Bottom line: "California's local governments have used up the least painful of budget options and now must make difficult choices, almost surely centered on spending cuts, Doppelt added.
"For many municipalities in California we're at a point where cuts will impact service delivery," she said, noting they may not be enough to stave off warnings on credit ratings.
Downgrades may follow if reserves are drawn down sharply, raising the borrowing costs of local governments and adding to financial strain."
Government will grow the California Great Depression.
Get angry or get poor.
More...