Sinkhole de Mayo Importing poverty wasn't such a good idea after all
Dan Walters -- Sacramento Bee -- May 6
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Local governments also feel budget pinch As Gov. Jerry Brown and legislators struggle so far unsuccessfully to close the state's chronic budget deficit, local governments and schools throughout California face fiscal crises of their own.
The stubborn recession that exacerbates the state's budget problem has also adversely affected local governments' property and sales tax income. Meanwhile, counties and schools have been hit by their dependence on Sacramento for support.
The recession's effects at all levels of government, moreover, have been magnified by the unfortunate even irresponsible decisions of local and state officials to make permanent commitments of funds that could not be sustained when the housing bubble burst.
Those commitments drove Vallejo into bankruptcy, and it's no secret that dozens of other local governments are flirting with insolvency. That's especially true of those now getting big bills from the California Public Employees' Retirement System because of its investment losses. [...]
The recession shows no signs of ending soon. State and local governments and schools will be facing tough times for years to come.
Meanwhile, everyone will be fighting over pieces of a shrinking pie. Los Angeles Times -- May 6 Tax pie shrinks even more: Unlicensed businesses flourishing in L.A. area