Monday, December 22nd, 2008 at 6:19 PM
Mrs. Laser Beam
From Barbara Boxer:
I have released a report detailing the impact of the nation’s recession on California’s counties and cities. The report, which was based on interviews conducted with officials in 20 cities and all 58 counties, paints a stark picture of the economic strains felt across California. The analysis includes unemployment figures, home foreclosure rates, budget deficits, and first-hand accounts of the impact of the recession.
This report is a reality check on the economy — things are not good, but change is coming. I am going to focus like a laser beam on saving and creating jobs, which is the backbone of any economy.
The report shows that budget deficits and revenue reductions have forced local government to make cuts in many programs, including public safety programs, Medi-Cal services, mental heath services, meals on wheels, and youth and senior centers. Non-governmental charitable organizations also have been stretched to the brink. In addition, critical infrastructure projects are stalled due to financing problems, which limits job growth at a time when unemployment rates are at their highest level in decades.
This report shows clearly that action is needed. I am working with Congressional leaders and President-elect Obama on federal economic recovery legislation, including:
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Investment to repair and improve existing infrastructure, including roads, bridges, transit and rail;
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Increased support for federal programs that support energy efficiency in new buildings and upgrades to existing buildings, which would create jobs;
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Investment in water infrastructure projects, including reclamation, reuse, and groundwater cleanup programs that could not only provide new water supplies but also create jobs;
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Increased investment in the Community Oriented Policing Services (COPS) program, which awards grants to state, local and tribal law enforcement agencies so they can hire and train law enforcement officers, purchase new crime-fighting technologies, and develop innovative policing strategies;
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Providing additional Community Development Block Grants, which help states and local governments to implement plans to address local housing needs and neighborhood stabilization as a result of the foreclosure crisis; and
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Increasing the percentage of funding the federal government provides to states for the Medicaid program, which provides health care services for low-income individuals.
The full report is available on my Senate website at:
http://boxer.senate.gov/features/Boxer_California_Recession_Report.pdf
Sincerely,
Barbara Boxer
United States Senator
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From her report:
San Diego County:
$10 million loss in property tax revenue Jan-Sept 2008.
Demand for food banks increased 50%, with 55,000 individuals per month seeking food assistance
City Of San Diego:
Population: 1,336,865
Unemployment rate: 6.8%
Foreclosure filings Jan-Nov 2008: 22,991 (one per every 21 households)
Posted on Monday, December 22nd, 2008 at 6:19 PM in Local Government, Psycho-babble | 6 Comments » | 
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“$10 million loss in property tax revenue Jan-Sept 2008.”
The use of the word ‘loss’ (rather than ‘decline’) shows how ingrained bubble prices are in our psychology. Every time house values go up that’s perfectly normal, but any time house values go down that’s somehow unnatural and abnormal. Something’s wrong if our economy and government is actually depending on bubble growth to survive.
Toyota is a good example of pragmatic and adaptive thinking. Although they’ve reported their first loss in over 60 years, they’ve reacted by making plans to cut back. In fact, even if car sales drop even *further*, they’ll actually be profitable. They’re shooting ahead of their target.
It’s not hard to imagine because after all, Toyota and GM were both profitable when they were 1/10th their size today. That’s why there’s no room for a business that’s unable to deal with ups and downs – i.e. unable to survive without a bubble. The same goes for government.
The best anecdote is the two types of wealthy and successful individuals. The first type, if he lost his money he’d learn to get by by being frugal. The other doesn’t know how to change, and if he lost his wealth he’d continue spending lavishly until he simply ran out (Michael Jackson and other celebrities, lottery winners, etc..). Those are the two types of businesses and governments we’re choosing between here.
BDiego | December 22nd, 2008 at 7:00 pmThat picture with her wide open pie hole is unnerving.
Smithers | December 22nd, 2008 at 8:16 pmYou’re fired!
Coconutz! | December 22nd, 2008 at 8:53 pm“$10 million loss in property tax revenue Jan-Sept 2008.”
Looking over the San Diego county treasurer’s web site gives some context to this number.
First, according to that web site, San Diego property tax netted just about $3.5B in fiscal year 2005-06 (most current year they show). If there is a $10M decline in revenue, that is a reduction of 0.3%. In other words, it’s trivial, and lost in the noise. We can safely assume that we would have exactly the same budget problems if property taxes had remained flat. The implication I draw from that is that the bubble is being used as a scapegoat for poor fiscal and management practices.
Second, the table shows that property tax revenues grew 40% in the three years between FY 2002-03 and 2005-06. That’s about 12%/year. Taken together with the observation that a 0.3% drop would seem catastrophic, I feel reasonably safe in concluding that plans were being made on the assumption that property tax would just keep increasing 12%/year for the foreseeable future. In other words, they were foolishly gambling on the bubble just like a lot of individuals.
Dwip | December 22nd, 2008 at 9:14 pm“I am going to focus like a laser beam on saving and creating jobs.”
Wait…don’t laser beams blow stuff up or burn them or otherwise make a mess of their intended target? Oh yeah, sounds about right.
lgs | December 22nd, 2008 at 9:17 pmA Dwarf! With l-a-s-e-r beams attached to her head!
Rob Dawg | December 22nd, 2008 at 10:12 pm