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Friday, March 19, 2010
City predicts $30 million deficit for 2010/2011
by Kathleen Haley, published on May 19, 2009 at 11:00PM
Storyline: City Budget
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The Sacramento City Council discussed its 2009/2010 budget Tuesday, but the news of the night was the city’s forecast that it will have a $30 million projected deficit in the 2010/2011 fiscal year.
Sacramento’s proposed budget for the 2009/2010 fiscal year would resolve the city’s current project $50 million deficit, but a new deficit is on the horizon.
Leyne Milstein, the city’s finance director, said the city is balancing its books for the 2009/2010 fiscal year in part by using $8.3 million in one-time funds. She predicts the $8.3 million projected deficit already expected for 2010/2011 will jump to $30 million.
“Gap will grow to $30 million as revenues continue to decline and expenses increase in FY 2010/2011,” according to Milstein’s report.
Milstein’s forecast also pointed out that low sales tax, property tax returns, and unemployment will continue to plague the city over the next five years.
She also noted that there is consumer confidence in Sacramento, but the city is not seeing it result in sales tax returns.
The city council Tuesday approved an “intent motion,” which is a step in its process of approving the budget. Councilmembers are scheduled to vote on the proposed budget June 16.
The city’s general fund for the 2009/2010 fiscal year is $385.9 million.
Council member Sandy Sheedy was the only one on the council who voted against the “intent” step Tuesday. She said she needed more information about the budget before she could approve it.
Mayor Kevin Johnson said he would spend the next two to three weeks learning the details of the budget.
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Now is the time for a federal bailout of local and state governments. Otherwise, the current downturn will be deeper and longer. The triggers for that will be local and state government spending cuts. They will further destabilize the private economy. This is not rocket science.
We shouldn't have any wars against those who want to kill us? Should we hug them?
The fault all lies in the laps of California voters who keep voting in the same left wing tax-and-spend imbeciles. The People of California deserve what they have gotten.
The Voters of Sacramento deserve a City budget deficit..we keep voting in council members who are owned by unions that have gotten very fat off our wallets.
All City's and Counties in California need to take heed of yesterdays election...70-80% of voters sent a loud and clear message... STOP SPENDING! Borrowing more money from the tax payers through a federal bail-out is simply ludicrous! I see Seth that you are the editor of Because People Matter... a socialist/communist publication.
California gets 78 cents back for every dollar of federal taxes it sends east.
If we were able to bump that number up a bit--say, 81 or 82cents per dollar, CALIFORNIA WOULD HAVE NO BUDGET DEFICIT.
Instead, the excess federal funds from California (and Nevada, and to a lesser extent, Texas) goes to federal projects in states like New Mexico, Mississippi, Alaska, West Virginia and Louisiana, who receive between $1.76 and $2.03 in federal funding per tax dollar sent. Californians subsidize federal projects in other states. So in asking for a federal "bailout," we're really just asking for our own state's money back.
For more detailst:
http://www.taxfoundation.org/press/show/22659.html
California does not need a bailout...we need to stop spending...we would have no budget deficit if we stopped paying $13 Billion a year for services to illegal aliens and stopped paying public employees 45-125% more than their counterparts in the private sector.
Despite what some Utopian socialist thinkers would have us believe, government cannot borrow and tax their way out of a deficit and recession.
And basic principles of economics.
Now Seth it's your turn, can you show any examples of how a state that is $21 billion dollars in debt due to overspending on public employees and insane retirement packages and spending billions on illegal immigrants can have a strong economy?
There is much talk of a "Return to Prosperity" - what is "Prosperity" exactly? It's an abstract term for sure. I prefer simple statements, like: "It sucks to be taxed" - and, "It sucks to go hungry" - "Constructive hard work feels good", and "Giving to your friends and neighbors feels good".
So, Seth, and Jim - the end results you're both aiming for don't need to be mutually exclusive. We just need to start with a list of what we all want and work backwards rather than relentlessly clinging to some ideological approach we foolishly trust will deliver satisfaction.
Now, that's common sense.