The CA budget's devastating local impact

by Leigh Graham · 2009-07-27 06:00:00 UTC
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I mentioned in passing last week California's plan to seize funds from cities and towns to close its budget gap.   Now CA municipalities are gearing up to fight back against this "transfer of $4.4 billion in local tax revenue to Sacramento."

Consider the additional impact this reduction in funds will have on localities already juggling mandatory furloughs and layoffs of state employees, police, etc.:

  • More layoffs;

  • Further reductions in services and hours at libraries, public agencies, etc.;

  • Public parks closed;

  • Road repairs stalled;

  • Redevelopment projects (good and bad) halted.

This last outcome is an interesting one.

Projects to fight blight, such as redevelopment of affordable housing or commercial corridors, for example, could be lost.  But so could these terrible giveaways municipalities undertake to woo or keep sports teams in their regions.  The linked article above could actually be a lot more compelling as an anti-poverty rallying cry if it had focused on the impact on community development initiatives versus this:

Officials in Santa Clara, where a proposal for a San Francisco 49ers stadium rests heavily on a $42 million redevelopment contribution, are girding for at least a $2 million redevelopment take-away. But Assistant City Manager Ron Garratt said that wouldn't be enough to sink the proposal — at least, not yet.

The team and city "predicted there might be these bumps," and the team has pledged to fill in the financing gaps, Garratt said. Still, if the state continues to raid redevelopment coffers in future years, the 49ers could decide to reconsider the deal, he said.

Seriously, can't the 49ers afford to pay for their own stadium?  I know, I know, Americans subscribe heavily to the idea that we must give away the farm to keep these precious big ticket gigs in our communities, with all their supposed revenues from job creation, increased foot traffic, etc., when it actuality the majority of the funds flow back to the team owners, stadium operators, and other private entities involved in the projects.

I'd like to think that faced with the harsh reality that they must make do with even less than anticipated during the Great Recession, municipalities will prioritize affordable housing initiatives, anti-foreclosure programs, small business development, and the like.  But I fear the more likely outcome is that these vital economic projects are shelved in order to save things like stadiums and convention centers as the rest of us confront rising unemployment, hunger, and economic hardship.

Original visual of CA budget cuts here; larger view here.

Leigh Graham
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