it would appear that the state & local bloodletting
-- a drag on growth and jobs
-- will continue longer than you'd hope.
...the weakening in local government finances
from the unwinding of inflated property tax revenues
is likely to be more gradual than the sharp decline
in income and sales tax revenues
that states experienced in late 2008 and 2009.
In order to preserve municipal services,
many localities are also considering property tax increases
that could put a floor under tax receipts.
However, while this might maintain spending
at a higher level than it would otherwise be,
it would nevertheless constitute fiscal restraint in another form."