 | Daily Real Estate News | July 1, 2008 |
City Budgets Pinched From Falling Values
With home prices falling and foreclosures on the rise, municipal budgets are starting to feel the pinch.
At least 29 states and the District of Columbia have reported budget shortfalls totaling $48 billion as they finalize 2009 fiscal budgets, according to the Center on Budget & Policy Priorities.
Many states are freezing new hires, borrowing for necessary expenditures, and dipping into "rainy day" funds to fill budget gaps and avoid tax increases. But by 2010, officials are expected to face even tougher dilemmas.
States With Biggest Tax Revenue Shortfalls
The following 10 states are feeling the worst affects of the problem, according to data from The Nelson A. Rockefeller Institute of Government. (The states are listed below, along with their annual tax revenue change for the January-March period in 2008 to the same period a year earlier.)
- Arizona: -13.6 percent
- Florida: -10.3%
- Rhode Island: -6.2%
- Nevada: -4.9%
- Georgia: -3.8%
- New Jersey: -0.3%
- California: 0.1%
- Washington: 0.2%
- Delaware: 0.3%
- Tennessee: 0.6%
Source: Business Week, Prashant Gopal (06/30/08)
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