Ted Owens: In terms of regional economy, ‘this is a socks and underwear type of year’
TRUCKEE, Calif. and#8212; With California redirecting costs to counties, property tax revenues remaining low and sales tax revenues estimated to be relatively flat, Nevada County officials are doubtful a major economic rebound will come soon.
Ted Owens, vice chair of the Nevada County Board of Supervisors and Truckee representative, and other supervisors spoke about the current and upcoming 2011-12 budget at last Fridayand#8217;s meeting, which took place in Truckee.
Using an analogy, Owens compared the county budget to Christmas.
and#8220;In a good year, youand#8217;re going to have all kinds of presents under the tree, like a trip to Maui, jewelry and all kinds of fun stuff,and#8221; he said. and#8220;But when itand#8217;s not so good, when itand#8217;s a bad year, you might get socks and underwear under the tree.
and#8220;This is a socks and underwear type of year.and#8221;
Nevada County Assessor Sue Horne said updated property tax revenue estimates probably wonand#8217;t be known until after the fiscal year turnover on July 1, when the countyand#8217;s report of all assessed properties is due to the county auditor-controller.
and#8220;We wonand#8217;t have any clear picture until July,and#8221; Horn said.
Supervisors also heard a presentation from Lloyd De Llamas, a financial analyst from HDL Companies, based in Diamond Bar, Calif.
De Llamas, called to give an update on sales tax estimates, said the state is recovering and#8212; banks are lending money again, car sales are going up significantly and business and industrial investments are showing a rebound and#8212; all according to an HDL study.
However, De Llamas said it is anticipated Nevada County wonand#8217;t recover as fast as other California counties in terms of sales tax revenues due to a lack of key industries, including new car sales, business investments in high tech companies and gas sales. De Llamas also estimated that gas prices wonand#8217;t peak until mid-summer.
De Llamas explained that while the county receives sales taxes from gas sales, they will directly influence other sales negatively as low to middle income consumers continue to cut traveling and spending.
and#8220;Your going to grow, but youand#8217;re not going to grow as fast as you will be reading about state-wide,and#8221; De Llamas said.
Generally speaking, he said the economy wonand#8217;t see an immediate rise in jobs as, unlike other times in history, this recovery appears to be a jobless one with many companies using technology to replace workers to generate higher profits.
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