Last week I said I would comment on how the state budget proposed by Governor Brown is expected to affect California’s housing market. I expected some changes in tax rates affecting housing, but after reviewing a summary of the budget, there are no changes to tax rates. In the budget summary, the writers of the budget expect local property tax revenues to increase this fiscal year and next fiscal year, despite a tough housing market. This may impact the Bay Area housing market very little, but local property tax revenues help pay for K to 14 schools. If local property tax revenues increase, less money is needed from the state’s General Fund to pay for K through 14 school costs. This extra money in the General Fund might be used to offset the budget deficit or to pay for other services or projects.
About Keith Burbank
Keith earned a master's degree in economics in 1995, and since then has worked as an economist in consulting, journalism, college teaching, and government. Most recently, Keith spent five years as an economist and lead benefit-cost analyst with FEMA on $350 million worth of mitigation grants to the State of Florida after four hurricanes in 2004 and three more hurricanes in 2005 ravaged the state. FEMA hired Keith as the first economist for disaster field work. Since that time, Utah State University admitted him to its PhD program in applied economics, but he hopes to complete his studies at the University of California at Berkeley in behavioral economics and international development and trade.
View all posts by Keith Burbank2 Comments on “Housing and the state budget”
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January 27, 2012
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January 30, 2012 at 11:01 am
I think you mean K-12 schools, Keith?
Very interested in any further analysis you have on the proposed budget.
Thanks,
-A