State Budget

The reports are coming into us fast and furious as the state budget saga continues. While the state legislature argues over school funding, they are also planning on stealing as much as $3 billion from local government. The form of the $3 billion take is yet to be determined, but the latest discussions seem to be focusing on a huge hit on our redevelopment funds.

The amounts that they are talking about for redevelopment could put many agency bonds into default, so the legislature may be using RDA funds as hostage to force cities to accept a stripping of highway and road funds instead.

We'll try to keep you informed of this fluid situation, but it seems like the scenarios are going to be changing on an hourly basis. The bottom line is that Manteca could be losing over $8 million in funding by the time this horrific budget is passed. Oh and by the way, our lobbyists are concerned that revenue projections are so flimsy in Sacramento, that whatever budget is passed could be out of balance again in a matter of months. There is a chance that we could be looking at a scenario where the budget starts getting revised every 4-6 months until the economy stabilizes, thus leaving us in a state of uncertainty for the next couple of years.

Click here for the latest report from Sacramento.