State/County and fewer collected taxes

[Tiny]

I just got to thinking about State sale taxes and/or income taxes and the effects of the "stay home" orders as some of us are heading into week 4.  

Not to mention the drop in Federal payroll taxes --- and wasn't that increase in payroll taxes going to fund all of Trump's 'tax breaks to businesses and wealthy people"?    I wonder how that's working at the Federal level.    I would think our next president is going to inherit a shit show  of empty coffers and huge debt.   

How's your  State  or County going to be doing with the prolonged big drop in people buying stuff/consuming stuff  combined with the drop in payroll taxes collected?   

[Deleted]

According to AEA, the Alabama legislature is going to pass a bare bones budget (no growth from last  year) until the economic effects have been determined.  If this crisis is short-lived, then they can reconvene this summer and make adjustments such as increasing the education budget, etc.  We have two state budgets that are funded separately with earmarked funds.

[hoops902]

Apr 7, 2020 10:12:31 GMT -5 @bamafan1954 said:

According to AEA, the Alabama legislature is going to pass a bare bones budget (no growth from last  year) until the economic effects have been determined.  If this crisis is short-lived, then they can reconvene this summer and make adjustments such as increasing the education budget, etc.  We have two state budgets that are funded separately with earmarked funds.

That sounds like government-ese for "bare bones"  lol.  

[Deleted]

In a way I really don't care.  My county sure had their grubby little hands out when real estate values went up and if I find that the next assessment is above a reasonable estimate of market value I WILL be filing a protest.  They went nuts last year increasing property values by about 40% (and they update every couple of years so this was not making up for lost time)  and backed down to 25% after they were deluged with appeals.

And you can be sure that cutbacks will be in the areas of road maintenance and police protection and school cutbacks will result in cutting programs, neglecting building maintenance and not re-stocking TP in the bathrooms.  The bureaucracy will continue to be well-funded. 

[hoops902]

Apr 7, 2020 11:26:11 GMT -5 @athena53 said:

In a way I really don't care.  My county sure had their grubby little hands out when real estate values went up and if I find that the next assessment is above a reasonable estimate of market value I WILL be filing a protest.  They went nuts last year increasing property values by about 40% (and they update every couple of years so this was not making up for lost time)  and backed down to 25% after they were deluged with appeals.

And you can be sure that cutbacks will be in the areas of road maintenance and police protection and school cutbacks will result in cutting programs, neglecting building maintenance and not re-stocking TP in the bathrooms.  The bureaucracy will continue to be well-funded. 

I'm not sure these statements align.  You don't care because all the cuts will be to important things?  Shouldn't you care MORE if you think the important things will get cut and care less if you thought the cuts would be in bureaucracy?

[The Walk of the Penguin Mich]

It is going to really suck for us.  A few years ago, about 1/3 of the local taxes collected was paid by Canadians coming down here to shop.  Since the border closed to that traffic, that chunk of income is gone.   I am not sure that we are spending less money (other than we are spending little for gas) but we are spending it in other ways.  We aren't paying taxes to restaurants, and groceries have minimal.  What we spent in restaurants, we are now spending in the grocery store.  

I suspect the local area will be hurting.

[Deleted]

Apr 7, 2020 11:33:27 GMT -5 hoops902 said:

I'm not sure these statements align. You don't care because all the cuts will be to important things? Shouldn't you care MORE if you think the important things will get cut and care less if you thought the cuts would be in bureaucracy?

That's what the politicians want. Keep their featherbedding, their high-priced crony consultants and their gold-plated health plans because the voters will approve taxes if they cut in areas that cause pain to your average person.

I don't have an answer but I'd like to see some cuts in admin costs first. And I do vote.

[busymom]

I discovered something interesting yesterday.  There's no one manning the toll booths.  At least, in the area that I was in, the lanes were closed off for folks who would normally drive in & pay cash.  

[Cookies Galore]

We haven't gotten our March financial reports yet, but I do anticipate my borough will see low numbers regarding tax revenue. The real estate tax discount period was extended 30 days, plus we're going to see obvious decreases in real estate tax transfer fees, occupational tax, earned income tax, permit applications, et cetera et cetera. We have already approved a new spending freeze and we are holding off on budgeted capital projects just to be safe. A number of grants we were planning on applying for improvement projects are on hold because we can't yet guarantee we will actually have the matching funds required. I'm glad our borough manager is on top of financials right now and trying to ensure our financial health doesn't suffer.

I'm already dreading 2021 budget planning.

[Cheesy FL-Vol]

Apr 7, 2020 13:49:10 GMT -5 busymom said:

I discovered something interesting yesterday.  There's no one manning the toll booths.  At least, in the area that I was in, the lanes were closed off for folks who would normally drive in & pay cash.  

They are probably using toll-by-plate. You'll get a bill in the mail.

[TheOtherMe]

The city near me has been trying to do a multi million dollar bond issue to totally redo an entertainment/concert type facility.  They had set a date for the referendum on the bond issue.  At last night's city council meeting, they voted to table it for now until they see what is happening with their overall budget.

If they were to hold the election in June, they know it would not pass.  

I'm sure even my small town is hurting for sales tax revenue.  We have a few sit down pizza places and two bars.  The pizza place has take out but the bars are closed.  There were always several cars at the two bars.

[TheOtherMe]

Apr 7, 2020 14:07:03 GMT -5 Cheesy FL-Vol said:

Apr 7, 2020 13:49:10 GMT -5 busymom said:

I discovered something interesting yesterday.  There's no one manning the toll booths.  At least, in the area that I was in, the lanes were closed off for folks who would normally drive in & pay cash.  

They are probably using toll-by-plate. You'll get a bill in the mail.

Last summer when I drove to Indiana for a concert, I got the transponder for the EZ-pass.  My tolls were paid that way.  

I have received bills in the mail for tolls when I have been in Colorado.

[wvugurl26]

I think most states have gone to video tolling or EZ pass only right now. It's another risk that probably isn't worth it.