SAN FRANCISCO - Times are tough, but California local governments have all kinds of creative financing tools to deal with impending budget deficits.
That is the thrust of a pamphlet published this week by the public finance practice of Orrick, Herrington & Sutcliffe LLP.
The pamphlet, entitled "Budget Relief and Deficit Financing By Local Governments in California," outlines more than a dozen financing options available to cities and other local governments staring at deficits as they head into budget season.
"I think this upcoming fiscal year, which for public entities in general starts July 1, is going to be much more challenging than the last number of fiscal years, which have largely been characterized by good fiscal times and even surpluses," said Roger Davis, chairman of Orrick's public finance practice.
Many California governments are faced with rising costs - often for employee compensation - but declining revenue streams, he said.
"In light of that, and in light of the upcoming budget season this coming quarter in which officials in each jurisdiction are trying to put together budgets, we thought it would be helpful to put in one place some techniques from the financing world," Davis said.
In the words of the pamphlet, it is a "quick review" of financing tools.
The options described in the pamphlet range from tax and revenue anticipation notes, to selling delinquent property taxes, to securitizing tobacco settlement revenues and other municipal assets, to public-private partnerships.
