With Gov. Arnold Schwarzenegger expected to sign a somewhat modified state budget today, just how badly San Francisco will make out is still as clear as a pint of Guinness. But there'll be no good news delivered today and for the rest of this week — only relatively good news (something akin to the doctor telling you “this is treatable — and most people go on to live fairly normal lives”).
We reported yesterday that the state hopes to snatch $28.7 million from our local Redevelopment Agency and $1.7 billion statewide — which prompted an all but certain lawsuit from the California Redevelopment Agency. Deputy city controller Monique Zmuda told SF Weekly that it appears San Francisco is also out $103 million in property taxes — though the state is mandated to pay this back, with interest, within three years (one is bitterly reminded of the scene in Dumb and Dumber where Lloyd and Harry hand out an IOU for a massive purchase and assure some poor sap that “those are as good as money.” Actually, Dumb and Dumber analogies are just too easy to make now regarding state politics. Let's digress).
Zmuda is unsure how the city will make up that possible $103 million
shortfall — though the promised payback with interest should provide
San Francisco (and other municipalities) with the ability to secure
loans and multiple cities may form “borrowing pools.” More fun than a “drowning pool,” but only by so much.