Municicpal Emergency Now Crisis
In my previous post, the source cited the governor's comments as follows:
Last year, the top 16 banks paid $173 million in taxes last year; this year, its $5 million, a 97% decrease.
However, the NY Times cites it as this:
In June 2007, he said, the 16 banks that pay the most on their business profits remitted $173 million to the state treasury. “This June, just a month ago, they sent us $5 million — a 97 percent decrease,” he said.
IF the Times quotes is more fully accurate, no payments in June would explain the EMERGENCY. State revenues are simply evaporating Abruptly!!!!!! A similar situation happened in Georgia with revenues slowing in June dramatically compared to the rest of the year. California is following a similar trend.
“Revenues are dropping dramatically,” the governor added. At the start of May, the state budget office projected a cumulative deficit of $21.5 billion over the next three years. Now, just two months later, that estimate has risen to $26.2 billion — “a staggering 22 percent increase in less than 90 days.”
“When I travel across the state, I see communities suffering,” Mr. Paterson said in his address, from the Red Room of the State Capitol in Albany. “Everywhere I go, I meet people who are losing their jobs and their homes. I meet families who are forced to pay more for gasoline and for food while their paychecks stay the same. Next winter, some of these families will have to choose between heating their homes and feeding their children. The rising cost of health care means that they cannot afford to get sick.”
As I indicated in earlier posts, it appears the situation has taken a dramatic downward turn in the past few months as evidenced now by Georgia and New York.
Without much of any revenues coming in from financial institutions to our local governments...we are running out of road pretty quickly. Obviously July can't be doing much better or else there would be no need for an EMERGENCY MEETING.