November 19, 2008

Sacramento Might Propose an Increase in Property Tax Rates

As you might have read (who hasn't?), the state's budget is out of whack by billions of dollars and many local governments face their own budget issues. San Mateo County's situation is no different largely because it depends on the state for revenues and that, coupled with declining property tax rolls, leaves the county in a difficult position. Compounding the problem is the recent loss of millions from the collapse of Lehman Brothers as well as the county's ongoing structural budget deficit.

California schools, cities and special districts - plus counties - all face difficult financial times ahead. There are hard decisions to make in the months ahead.

Floating around in the halls of the capital are lots of ideas to patch up the money shortfall. And if you hang around those who deal with financing local government sooner or later you will hear about a "split assessment roll" as a potential partial solution. That idea is being talked about again and it has business folks concerned.

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