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The question is, what happened to all the taxes from the real estate bubble?
Oh I get it, they forgot to tax according to RE market values further inflating the bubble and now everyone is asking for a break now that RE crashed...
By BOBBY WHITE (WSJ)
RIO VISTA, Calif. -- California may soon have more bankrupt towns on its hands.
The city of Vallejo, Calif., gained national attention earlier this year by filing for Chapter 9 bankruptcy protection. Now, two neighbors are fighting to avoid the same fate, as the state's economic crisis spreads.
Isleton and Rio Vista, small towns roughly 50 miles northeast of San Francisco, say they have begun consulting with bankruptcy lawyers as they draw up plans to deal with their mounting budget crises. The towns' leaders say they hope to avoid bankruptcy, but concede the move may eventually be their only option.
"We're strapped for cash and by the end of March or early April we may not have enough money to pay for payroll," says Hector De La Rosa, Rio Vista's city manager.
Getty Images: A Rio Vista, Calif., street is empty after construction was halted at a housing development last month.
California's troubled towns can't expect much help from the state. A state board voted Wednesday to shut off $3.8 billion in financing to hundreds of infrastructure projects to preserve cash, as the nation's most populous state struggles under a budget deficit that officials say could balloon to more than $40 billion over the next two years.
"California's fiscal house is burning down," State Treasurer Bill Lockyer said in a statement.
...more
Article link:
http://online.wsj.com/article/SB122954346309915189.html
Oh I get it, they forgot to tax according to RE market values further inflating the bubble and now everyone is asking for a break now that RE crashed...
By BOBBY WHITE (WSJ)
RIO VISTA, Calif. -- California may soon have more bankrupt towns on its hands.
The city of Vallejo, Calif., gained national attention earlier this year by filing for Chapter 9 bankruptcy protection. Now, two neighbors are fighting to avoid the same fate, as the state's economic crisis spreads.
Isleton and Rio Vista, small towns roughly 50 miles northeast of San Francisco, say they have begun consulting with bankruptcy lawyers as they draw up plans to deal with their mounting budget crises. The towns' leaders say they hope to avoid bankruptcy, but concede the move may eventually be their only option.
"We're strapped for cash and by the end of March or early April we may not have enough money to pay for payroll," says Hector De La Rosa, Rio Vista's city manager.
Getty Images: A Rio Vista, Calif., street is empty after construction was halted at a housing development last month.
California's troubled towns can't expect much help from the state. A state board voted Wednesday to shut off $3.8 billion in financing to hundreds of infrastructure projects to preserve cash, as the nation's most populous state struggles under a budget deficit that officials say could balloon to more than $40 billion over the next two years.
"California's fiscal house is burning down," State Treasurer Bill Lockyer said in a statement.
...more
Article link:
http://online.wsj.com/article/SB122954346309915189.html
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