January 1, 2008 (LPAC)--"Instead of having a soft landing, we've crashed," said Edward L. Long Jr., a Fairfax, VA deputy county executive. Property values were jumping 20% a year in Fairfax. Now values are flat or falling. The number of foreclosures has exploded, from fewer than 200 two years ago to about 4,000 in 2007. The resulting $220-million budget shortfall has officials warning of significant cuts in services, including spending on public schools.

This is but one example given in a Dec. 31 Los Angeles Times piece on the budget crises state and local governments are facing as a result of the collapse of property tax and related revenue. "We're talking about a pretty tough fiscal environment for the next four or five years," said Christopher W. Hoene, the director of policy and research for the National League of Cities. "Libraries, parks, after-school programs ... you'll see lots of questions raised about cities' abilities to fund them."