Tag Archives: Contra Costa Times

Sacramento to Cities: “Give us your revenues, AND we’ll tear down your buildings!”

The headline reads, “State budget deal depends on borrowing, accounting tricks, and gimmickry.”

Which state is it?

In this case, California; the headline is from the Contra Costa Times. On Monday night the state made a deal to close its $26.3 billion deficit; the package includes $15 billion in spending cuts, and $11 million in accounting gimmicks, borrowing, and overly optimistic assumptions. These include:

  • $2 billion borrowed from local governments’ property tax revenues (to be repaid with interest in 3 years),
  • $2 billion in cuts to local transportation and redevelopment funds,
  • $9 billion in payment deferrals to education, and
  • Deferring state employee’s paychecks by one day – essentially putting $1 billion in salaries on next year’s ledger.

Here’s a rundown. Continue reading