11-12-2008, 09:26 AM
On the other hand, with foreclosures hitting record numbers, sooner or later, home values are going to drop out the bottom of the barrel. Already, cities and schools are seeing total taxable valuation in their taxing districts plumment. Right now, businesses are appealing their assessments, and you can be sure, residential values are going to drop like a rock soon as well.
What will cities and schools do if the tax base their millage is calculated against drops by 20%, but their costs remain the same or increase by a typical inflation factor? The only way to deal with that would be massive cuts. Fire every 5th teacher? Wow. Then you get an impact back into the community, just like the auto plant shutting down, paying out unemployment, etc. etc. all this crap just builds on itself.
Is the end of life as we know it near? Will the U.S. become a 2nd class country?
What will cities and schools do if the tax base their millage is calculated against drops by 20%, but their costs remain the same or increase by a typical inflation factor? The only way to deal with that would be massive cuts. Fire every 5th teacher? Wow. Then you get an impact back into the community, just like the auto plant shutting down, paying out unemployment, etc. etc. all this crap just builds on itself.
Is the end of life as we know it near? Will the U.S. become a 2nd class country?