How much will taxpayers shoulder?

[kandrathe]

In related news, the number of foreclosures fell last month. This, however, is only because banks decided to not pursue foreclosures during the holidays and also the intervention of several agencies trying to assist those going into foreclosure. It is expected that January/February will be some of the worst months yet. I'm sure Congress will use that data to avoid having to pass any laws pertaining to foreclosures until after the inauguration. In the mean time, it's going to get a lot worse before it gets better. I've heard some estimates that the housing market may not be able to recover until next fall.

Since this thread is about the taxpayers, what does everyone think about the local cities and state that will take in less tax revenue, both from house sales and those cutting back after losing a job? Do you think they are going to resort to tax hikes or are they just going to cut back so far that they are useless to the citizens. Most states require a balanced budget, they can't just borrow their way out like Congress can.

Those areas that decide to try to tax more risk turning their localities into ghost towns as people are forced from their homes. I don't believe that all government services are all crucial, and there are plenty of "nice to haves", like parks and trails, that the governments can still trim back. Then there are rational areas that even essential services can trim back, like high tech equipment on police cars. Maybe they don't need that $50,000 radar gun replaced this year. Our city recently voted down a $5 million bond for a new town hall, opting instead for a $1 million refurbishment of the current one. Another example was with their expansion of city water; rather than force everyone to pay whether they wanted it or not, they decided to only run lines off the main lines (used for fire protection) where the preponderance, (and therefore the funding) of citizens have opted for city water. It's the small stuff that keeps our local taxes smaller. Now if only we could convince the Minnetonka school system to try to control it's budget growth, although its hard to complain with the results.