Board of Equalization cuts advance revenue to cities

Michelle Steel, who represents the California Board of Equalization's 3rd District, has announced that the board has sent 337 letters to local government finance directors explaining that "declining state sales tax revenues have caused a reduction in expected local allocations for their August 2009 advances," a news release states.  "In addition, 15 jurisdictions received letters notifying them they will be receiving no August advance.  This is a continuation of an issue that developed this year with the unprecedented drop in taxable sales due to the recession.  Payments to the local taxing jurisdictions are based in part on prior taxable sales patterns that do not apply in the current economic climate.  Similar letters were sent to 473 local jurisdictions in May 2009."