| As predicted and expected local governments are | | | | South Florida is in tough shape and small |
| beginning to trim the fat and that means laying | | | | businesses are failing, due to the cascading |
| off employees. In markets where housing has | | | | problems of the housing crisis. Economists |
| taken its biggest bite out of the economy, there | | | | speculate that this scenario will be repeated in |
| is an air of uncertainty. Country controllers, city | | | | other high foreclosure housing markets first as |
| auditors and local government leadership is trying | | | | we get through the recession. The recession will |
| to find ways to keep things moving and services | | | | most likely be announced after it is over, as that |
| strong, even with the dwindling of tax receipts | | | | is what the Fed and Treasury did last time. |
| from lackluster retail and auto sales, plus slow | | | | Local Governments are also watching their costs |
| pays and property tax value re-adjustments. | | | | increase as fuel costs have been taking a larger |
| The City of Phoenix, Arizona is cutting 500 | | | | and larger chunk out of their budgets. This is also |
| employees now, with more to follow. In state | | | | effecting education due to the costs to run school |
| governments we already read about California's | | | | buses. It appears what has happened is no real |
| hiring freeze and now Arizona is following suit, | | | | surprise, as government generally spends |
| they have no choice. Most cities in both California | | | | whatever it takes in plus some, growing the |
| and Arizona anticipate on cutting 5-10% out of | | | | bureaucracy incrementally, now with tax receipt |
| their budgets in physical year 2008. That means | | | | income down, they are going to have raise taxes, |
| no new buildings, equipment, hiring and trimming | | | | fines and fees while reducing costs too. Maybe it |
| budgets, which will mean laying-off employees. | | | | is time for government to go on a diet? Of |
| The States of Nevada and Florida are in similar | | | | course, with increased foreclosures comes more |
| positions. In Nevada they are watching their | | | | crime too. |
| receipts hurt due to less travel from California to | | | | Meanwhile, the local governments are providing |
| their casinos in the Northwest part of the state | | | | services to illegal alien and those costs are |
| and then huge foreclosure numbers in both | | | | mounting as well. The challenges are intense and |
| Northwestern Nevada and Clark County (Las | | | | growing, municipalities and county governments |
| Vegas), affecting property tax receipts. Las | | | | are getting hit from all sides, as their income is |
| Vegas has enjoyed foreign tourism increases (due | | | | reduced, their costs have increased and more |
| to weak US dollar) for hotels, entertainment and | | | | folks are demanding more services, while crime is |
| gambling. Although car sales are down statewide, | | | | increasing too. Things are not looking too pretty |
| the general retail receipts are actually up in Las | | | | right now. |
| Vegas, the most populated region of Nevada. | | | | |