“April 6 (Bloomberg) — Los Angeles Mayor Antonio Villaraigosa called for shutting down “nonessential” city services two days a week, after Controller Wendy Greuel said the municipality’s cash may run out next month. The plan would target services that don’t generate revenue, …”
Shutting down non essential servicers; ok. However, what they should be really doing is shutting down those services that even though generate revenue, cost more than revenue. Those are the services that are killing the budget.
Anyway, along with Walmart slashing prices on consumer goods:
… the inescapable conclusion is that state tax revenue is reduced further still. So individual states are going to need to cut a lot more services.
Add to that the fact that property taxes constitute a significant chunk of state tax revenues. But property tax rates are assessed only every 3 years or so. Now, considering that since the peak in 2007 on average real estate values have dropped at least 30% across the US, this is one more shoe that is about to drop with regards to state tax revenues and, in turn, for federal tax revenue.
Tic, toc… tic, toc… tic, toc…