The U.S. Census bureau released new data showing housing vacancies in the Sacramento, Arden-Arcade and Roseville areas have increased from 1.2% in 2005, to an all time high of 4.8 % in 2008, dropping to 2.9% in 2010.

The Census Bureau classifies vacancies as any home not occupied at the time of the survey. Among these are the increased numbers of foreclosures in the area. Property taxes don’t get paid on these vacant foreclosures until a new owner comes in and buys the house and pays the back property taxes.

With the County unable to recoup the loss of funds provided from property taxes the county is losing out on a substantial amount of money.

In a press release put out by the Sacramento County, Ken Stieger, the County Assessor announced that the gross assessed value of the combined property tax roll is $128,769,550,688 which is almost $3 million less than in 2009-10, or a decrease of 2.17 %.

In Sacramento County a majority of property tax revenue goes to schools, but smaller portions go to fire protection, cities, redevelopment, and special districts such as cemeteries, insect control conservation, county library, road, and irrigation and water districts. Property taxes also fund community service districts and recreation and park districts.

“A number of factors contributed to a second year of decline of the Sacramento County property tax roll”, Stieger said in the press release, “Some residential areas continue to see market value declines as do an increasing number of commercial properties.”
According to the census website between 2008 and 2009, the median property value decreased in the United States by 5.8%.

In the Sacramento, Arden-Arcade and Rossville area the median house price changed from $350,500 in 2008 to $298,000, a decline of 15%, much larger than the countries average. This change in property value is another reason the county has seen a decline in revenue.

Kathleen Kelleher, the Sacramento County Assessor, said, “Since January, we continue to see declines in the real estate market. As a result, if the market does not improve by next January, property tax revenue will decline even further and additional cuts in services would be the result.”

Sacramento County just released preliminary budget data detailing the cuts needed to be made in order to recoup financial loses. Out of 11,500 country workers 315 workers will be let go. These cuts are a continuation of previous reductions, over the last three years the County has had to let 3,000 people.

Chris Andis, Sacramento County’s Communication and Media Director said, “Since much of our local discretionary revenue comes from property taxes, we have had to reduce services that we provide to the public, and the amount of staffing to support those services.” The most notable staff reductions have been to the probation departments. Neighborhood sheriff stations as well as welfare offices have also been closed.

The County has started working with non-profit and private organizations as an alternative way to provide services. They are also working on several efficiency projects to be able to provide services at lower costs. By reorganizing and merging departments they will also be able to save money in an attempt to keep needed services and jobs for the community.

The Department of Human Assistance, responsible for welfare, financial assistance to lower income residents, childcare, food stamps and the homeless, has had to close offices and cut back on staff and caseworkers. The Department’s preliminary budget shows, “The quality of customer service to our community partners, other county departments, DHA staff, and the general public will decrease as a result of these reductions.”

Along with the staff reductions and department consolidations, programs are going to be cut. One of the Department of Human Assistance’s sectors works with the Sacramento Police Department as part of a Domestic Violence Prevention and Response Team. This program provides people to accompany police officers to domestic violence situations in order to help victims apply for financial assistance, restraining orders and other community resourses. According to the Department’s new budget, this department is going to be eliminated.

Childcare for CALworks is going to be reduced as well. Funding mandated for the counseling of people with mental health and substance abuse problems is also going to be cut. Because of these staff reductions and lack of oversight, the County is also at risk of missing out on additional funding from the State for transitional and permanent housing to the homeless, as well as other State and Federal homeless assistance programs. The County is working towards setting up a non-profit to prevent this from happening.

The County has lost $1.6 billion in revenue since the 2008 and 2009 fiscal year. Andis said they will be reducing more service positions in the coming year.