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California LAFCo Annual Conference October 28-30, 2009

California LAFCo Annual Conference October 28-30, 2009. Sales and Use Tax Revenue: FY Total and Percent Change - State. Source: California Department of Finance, Financial Research Unit, December 11, 2008. The Fiscal Squeeze. Growing Service Demands Increasing Costs Falling Revenues.

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California LAFCo Annual Conference October 28-30, 2009

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  1. California LAFCo Annual Conference October 28-30, 2009

  2. Sales and Use Tax Revenue: FY Total and Percent Change - State Source: California Department of Finance, Financial Research Unit, December 11, 2008.

  3. The Fiscal Squeeze • Growing Service Demands • Increasing Costs • Falling Revenues

  4. Growing Service Demands Source: State of CA, Dept. of Finance

  5. Increasing Costs • Agencies must make larger retirement contributions to offset CALPERS portfolio losses • New Accounting Rules • Must address post employment benefits costs in current budgets

  6. Required CALPERS member contributions increase as stock market falls Source: CALPERS

  7. Falling Revenues • Loss of sales taxes due to slowdown in consumer spending

  8. Loss of property tax revenues due to collapse of real estate bubble Source: CA State Controller

  9. Loss of development-related revenues due to housing crash Source: Calif. Building Industry Assn.

  10. More Local Government Sacrifices to Help Balance 2009-2010 State Budget • Local agencies forced to loan up to 8% of 2009-1020 property taxes to State • State promises to pay by 2013 • State decides to pay 2% interest • Loan securitization - but local agencies will likely pay higher interest rate

  11. State suspends Williamson Act payments to local governments • Worth $33.1 million in 2008/2009 Source: CA State Controller

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