This Is Happening All Across America

American cities are facing budget deficits that are a result of lower sales tax receipts, lower construction fees, lower property tax receipts from foreclosures/valuation declines.

The cities can raise taxes and add new fees to an already strained populace or they can cut expenses by reducing head count. A city such as Santa Rosa, California is feeling the constraints of a declining economy and the choices are proving to be difficult.

It appears that tax payers have had it with ever increasing taxes, so it looks as if more employees will be losing their jobs.

There are hundreds of similar situations all across America. Most local governments are facing new yearly budgets that start between July 1 and October 1. Many cuts for essential services are happening and the results will drive the unemployment rate higher in the months to come.

Economic recovery will take a but longer than what you here on tv.

This article comes from the web site Petaluma360.com

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City’s deepening fiscal crisis

Published: Thursday, June 4, 2009 at 3:00 a.m.

As city tax revenues continue to plunge and the clock ticks down to the June 15 deadline for the city to adopt its 2009-2010 budget, the severity of the city’s fiscal crisis has become increasingly grim.

A memo from the president of the union representing the city’s non-public safety employees to Mayor Pamela Torliatt last week provides some insight into the current state of negotiations and how far apart the two parties are in coming to terms with some very tough choices regarding potential pay cuts, benefits reductions and layoffs.

According to the memo, the city is seeking major concessions from the union: either a 9 percent pay cut, the elimination of city-paid health benefits or the layoff of up to 30 employees. With a little over 100 workers in the city’s largest bargaining unit, a reduction of 30 positions would significantly impact the city’s already-depleted service levels.

As part of the first round of layoffs that began last fall, the city laid off about 25 employees and scaled back programs in the parks and recreation, public works and planning departments to save about $3.5 million. City office hours were cut back to four days a week, with offices closed on Fridays. And in April, the city gutted its planning department, laying off virtually the entire staff.

The prospect of the city laying off another 30 employees — in addition to the cuts that have already been made — is extraordinary. Which positions might be eliminated — in parks and recreation, water, public works or other departments — has not been determined. But it’s inevitable that more layoffs will come, especially if union members are unwilling to accept pay or benefits reductions like those that have become so prevalent in the private sector.