The state is poised to take about $4 million from Tracy coffers, according to a statement just released by city spokesman Matt Robinson. (The state calls it "borrowing," but don't hold your breath for repayment.)
That means the city's budget situation — already running at a structural deficit — is just about to get worse.
The straits aren't dire, as the city still has about $25 million in the bank that could pay for the state's "borrowing." But the city is not counting on that reserve to last forever, as evidenced by the decision to defray some costs by charging for fire department-served paramedic services.
This space anticipates more reductions in services and more creative fee increases (please, don't call them taxes). The "new normal" isn't new anymore.
Friday, July 24, 2009
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