I'd be surprised (actually shocked) if property tax revenues only fall 1.6% ($189 mil to $186 mil). Given the magnitude of the real estate declines we've seen to date combined with expected real estate declines to come I'm guessing the final figure will be much higher.
County facing series of budget cuts
The sour economy has spoiled tax revenue projections to the point that Sonoma County's government will end up $21 million in the hole next fiscal year unless supervisors impose employee and program cuts, a new budget report warned Friday...
The economic downturn, in which housing prices have sunk and property assessments have plummeted, is a major reason for the general fund shortfall.
The county expects to collect almost $3 million less next fiscal year because of "the dearth in real estate market activity and reductions in values," Deis' memo said.
Administrators predict property tax revenues will fall from $189 million this fiscal year to about $186 million during the fiscal year that runs from mid-2009 to mid-2010.
There are quite a few buildings in the county that were never permitted and locating them might ease the shortfall.Of course many were built by wealthy or politically influential individuals or businesses so this may not be feasible...
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