1. bae California LAFCo Annual Conference October 28-30, 2009

2. bae Sales and Use Tax Revenue: FY Total and Percent Change - State Source: California Department of Finance, Financial Research Unit, December 11, 2008.

3. bae The Fiscal Squeeze  Growing Service Demands  Increasing Costs  Falling Revenues

4. bae Growing Service Demands Source: State of CA, Dept. of Finance

5. bae Increasing Costs  Agencies must make larger retirement contributions to offset CALPERS portfolio losses  New Accounting Rules Must address post employment benefits costs in current budgets

6. bae  Required CALPERS member contributions increase as stock market falls Source: CALPERS

7. bae Falling Revenues  Loss of sales taxes due to slowdown in consumer spending

8. bae Source: CA State Controller  Loss of property tax revenues due to collapse of real estate bubble

9. bae  Loss of development-related revenues due to housing crash Source: Calif. Building Industry Assn.

10. bae  Local agencies forced to loan up to 8% of 2009-1020 property taxes to State State promises to pay by 2013 State decides to pay 2% interest Loan securitization - but local agencies will likely pay higher interest rate More Local Government Sacrifices to Help Balance 2009-2010 State Budget

11. bae  State suspends Williamson Act payments to local governments Worth $33.1 million in 2008/2009 Source: CA State Controller