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State Fiscal Crisis and Local Government Budgets

Original post made by Hal Bailey, another community, on Dec 2, 2008

Dear Dolores,

Our State fiscal crisis has potential for dire impact on county and cities budgets in our region. The flow of funds owed to cities from various tax resources could be retained by the State to offset $$Billions in State budget shortfalls.

Danville has already acknowledged the potential and our county has provided notice to several cities using county contract services of potential reduction in services or fee increases.

Even fiscal studies for the proposed town of Alamo are subject to review based on this fiscal crisis and potential changes in revenue and costs of contract services.

It is newsworthy and deserves your journalism. Among Joan Buchanan, Guy Houston, Candace Andersen, and more representatives in government, you could provide expert insight into our regional budget impacts.

Most importantly, we are not at the bottom of this crisis yet and more dire impact can be expected. Your readers need your best effort to define this impact.

Hal/CDSI

Comments (1)

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Posted by Rachel Wells
a resident of another community
on Dec 2, 2008 at 3:24 pm

Dear Editor:

Please review: Alamo Today, December 2008 issue, Page 23

Sharon Burke, Member, Alamo Incorporation Movement Committee, has provided a campaign release that supports incorporation during the current State and County financial crisis. There are major omissions from the campaign release that misrepresent the feasibility of incorporation.

The release does not explain the impact on the proposed town budget if the STATE withholds various tax revenues stated in the LAFCO CFA. Recently, Danville Town Government expressed concerns that such tax revenue sharing would be withheld by the State for budgetary reasons. LAFCO's CFA consultants explained, during the September approval meeting, that incorporation would not be feasibly if such tax revenue sharing was withheld.

The release does not explain the impact of a declining sales tax base created by the prospective loss of anchor stores in the Alamo Business District. The sale of Longs and Wachovia could end their location in the Alamo Business District. Block Buster and YardBIRDS have informed current investors in the business district of potential changes due to downturns in their business volume. There is a growing likelihood of further vacancies the Alamo business district due to downturn in sales volumes.

The release does not explain the impact of an increase in county contract-services fees from those stated in the LAFCO CFA. Neighboring cities have confirmed the county has notified cities that various contract-services including police will be provided at increased fees in 2009/2010. Other cities and districts have reported higher costs for police, fire, public works and similar services and would provide higher fees for contract-services to the proposed Town of Alamo.

All neighbors expect your news operations to fully review and report the impact of the State and County Financial Crisis on all cities and the proposed city for Alamo.

Rachel Wells
Ad hoc community committee
Diablo Vista region neighborhoods


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