The president’s proposed federal budget will cut deeply into California funding for energy assistance, neighborhood blight assistance and beach cleanup. However, that is just the starting point, fear many Californians who know that the GOP majority believes that it must cut much deeper into the budget than the current administration is willing to go[1]. While some proposed cuts include axing money that supports jailed illegal immigrants (California is a top recipient of this type of funding), many of the cuts target programs that support “community development” intended to “revitalize rundown neighborhoods and help low-income residents.” Currently, California receives $500 million in this type of funding and another $150 million for public works like upgrading sewage treatment plants.
Not surprisingly, state officials are in a panic. “We have a $25 billion deficit” explained a spokesman for the California Department of Finance. “These cuts will drop federal reimbursement to just eight cents for every dollar Californialifornia spends.” The California real estate market could suffer also if the government can no longer fund the tax incentives that led to a strong 2010 finish[2]. However, some experts believe that the housing market is “no longer as significant to the broader U.S. economy as it once was,” and are not all that concerned about troubles in California or elsewhere due to housing woes.
Do you think that California’s programs for real estate and other assistance should be getting the axe?
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[1] http://articles.latimes.com/2011/feb/15/nation/la-na-budget-Californialifornia-20110215
[2] http://www.ctv.California/generic/generated/static/business/article1914589.html
