No significant local government impacts are anticipated, so far, from Governor Newsom’s May budget revision. But the deficit has grown nearly 10-billion more dollars, to 31-point-5 billion. A year ago the state had a 100-billion dollar surplus. Nevada County Deputy Executive Officer, Martin Polt, says they will continue to monitor California’s fiscal situation closely…

click to listen to Martin Polt

Polt also points out that the state’s largest source of revenue is personal income taxes and about 90-percent of returns have been delayed, with the filing deadline pushed back to October. Local governments rely more on sales and property taxes. And Polt says they are being affected by the series of interest rate hikes designed to tamp down inflation…

click to listen to Martin Polt

Meanwhile, Polt says he’s glad to see that the governor has not tapped into the state’s 22-billion dollar rainy day fund at this point. Newsom is also maintaining his investment to reduce homelessness, at 15-billion dollars. But he stated that the state needs to more effectively leverage the money for more federal dollars, by having more shovel-ready projects. He says the only way to do that is to reform the permitting process.