California CountiesCalifornia State Association of Counties
In the News

LAO Analysis: Budget Shortfall $28 Billion

Nov. 12 -- Newly-appointed Legislative Analyst Mac Taylor had the dismal task of delivering the news to his new bosses: that budget shortfall they've been hearing so much about is real - to the tune of $28 billion over the current and upcoming budget years combined.  The Legislative Analyst's Office released its report Tuesday on the Governor's special session budget proposals. In his press conference Tuesday, Mr. Taylor was unequivocal: "The state will need to make major ongoing reductions to current service levels and impose major increases in revenues in order to achieve fiscal balance."

The LAO identifies the following positive aspects of the Governor's special session proposal:

  • Realistic Numbers. The Governor's package would achieve its targeted savings and close the budget gap for 2009-10.
  • No Borrowing. The Administration has avoided putting forward any new budgetary borrowing proposals.
  • Long-Lasting Solutions. The Governor's proposals would provide budgetary relief for at least three years and permanently in many cases.

  • Balanced Approach. The Governor has put forward a mix of revenue increases and spending reductions. The magnitude of the budget shortfall is too great to close on only one side of the ledger - revenues must be increased and expenditures must be decreased.

Click here to read full Executive Director's Watch
 
Click here to read CSAC's Special Session Budget Action Bulletin
 
 

Economic Crisis Hitting Counties Hard

Oct. 30 -- The economic crisis facing America is striking California's 58 counties - and hard. At the same time, traditionally steady county revenue sources, such as property and sales tax, are dwindling and the financial crisis is causing the demand for county services to climb significantly.

Take a look at some of the headlines found around the state in just the past couple of weeks:

How to provide increased services with decreasing revenues - that's the challenge facing California counties. And this challenge is even becoming more complex with a state revenue gap that has already mushroomed to $10 billion, prompting discussion of additional cuts to program funding being made mid-year. With counties providing more than $38 billion in programs and services on behalf of the state, additional reductions in funding could be catastrophic.

To learn more about how the economic crisis is impacting county governments, click here.