Thursday, August 03, 2006

County Continues to Lose Money

When we started this organization in 2003 and called for management of the Parkway by an independent nonprofit organization contracting with the county, like other major public resources are managed locally (Sacramento Zoo) and in other major cities (Central Park in New York) we did so because of the inexorable reduction of funding that the county was experiencing causing it to continue to have difficulty funding even the most basic maintenance the Parkway needs, which was made crystal clear when the county threatened to close the Parkway two years ago.

This report documents their funding difficulty…and it’s worse than we thought…and this report only goes up to 2004.

An excerpt.

Retail growth outruns populace
Businesses follow residents into the suburbs and foothills, leaving the county to reap less sales tax and less of region's disposable income
By Cathy Locke -- Bee Staff Writer Published 12:01 am PDT Thursday, August 3, 2006


The city of Sacramento remains a hub of commercial activity, but businesses are following population into the suburbs and foothills, according to a study of records.

State Board of Equalization figures for 2000-04 show taxable sales rising at rates that generally far exceed population growth in cities and the unincorporated areas of Sacramento, El Dorado and Placer counties.

"The thing that probably shocks anyone who comes back to Sacramento after having been away for some time is the amount of retail in Folsom and Roseville," Terri Sexton said.

Sexton is associate director of the UC Davis Center for State and Local Taxation and an economics professor at California State University, Sacramento. Though she keeps an eye on growth in the region, Sexton said she was amazed recently to see the new retail development along Highway 49 in the north Auburn area.

The growth in taxable sales distinguishes the three counties within the six-county region represented by the Sacramento Area Commerce and Trade Organization. Among the larger economic region that also encompasses Yolo, Sutter and Yuba counties, growth in taxable sales is closer to population growth, said Bob Burris, deputy director of SACTO. The organization works to recruit businesses and bring jobs to the region.

The importance of business, and especially retail growth, was spotlighted as cities and counties began the new fiscal year. Particularly in cities, sales tax revenue makes up a big portion of the general fund -- money that city councils and county boards of supervisors can use as they see fit. Those dollars typically pay for such basic services as police, public works, and parks and recreation. ...

As a portion of general fund revenue, sales tax accounts for nearly 36 percent in Folsom, 38 percent in Citrus Heights, 25 percent in Rancho Cordova and 48 percent in Placerville. ...

Sacramento County lost both population and tax dollars,...