State withholds money from cities

Sales-tax revenues are down—so the state is cutting sales-tax advances

The cities of Chico and Oroville will be getting a little less money from the state, thanks to a Board of Equalization cut in allocations due to a decline in state sales-tax revenues. The board on Monday announced that 535 jurisdictions would be receiving less money for November and 19 would be receiving none at all. Chico and Oroville fall into the former category.

According to the BOE, Chico will lose 6 percent, roughly $153,000; and Oroville will lose 10 percent, about $54,000.

Frank Fields, revenue accountant for the city of Chico, put the numbers into perspective by explaining that in the second quarter (April through June), Chico’s sales-tax revenues were down 23.7 percent over the previous year. Because of that, the state decided to cut third-quarter advances.

“Throughout the state, sales taxes have decreased so dramatically that they [the state] are having to make these adjustments ahead of time,” Fields said. He added that he is not worried about the decrease in money, and that it likely will come back to the city once final figures for third-quarter revenues are in.