Soon to be Every Day Headline: Falling property tax revenues prompt Folsom to announce layoffs
This is going to be your city and county. As short sales cut the value of homes, as homeowners get desperate to sell their homes, as foreclosures force banks to cut the cost of homes, property tax revenues will go down.
“The factors that are driving the city’s revenues lower are not unique to Folsom. Countywide, proceeds from property taxes are declining and the region struggles to extricate itself from a glut of foreclosures that has driven home values lower.
Property taxes and sales tax proceeds make up the city’s largest share of local revenues…. Those cuts will leave the city will 422 full-time positions, down from 586 in 2008.”.
The bad news is that home equity is being destroyed. The good news is that government is being forced to be responsible and end special interest programs.