Cities, states tack on more user fees
State and local governments are turning to user fees to raise quick cash — from increases on hunting licenses to fees for enrolling in the Little League. One town is considering charging accident victims who need to be extricated from their cars.
As cities and states struggle with sinking property values and declining sales tax revenue, many see raising fees as more acceptable to voters than increasing income taxes and sales taxes, said Bert Waisanen, a fiscal analyst for the National Conference of State Legislatures.
Money from the federal stimulus package will bolster some parts of states’ budgets, but it won’t be enough to close the gaps, said Scott Pattison, executive director of the National Association of State Budget Officers. “The stimulus favors education and health care,” Pattison said. “Other parts of the budget are going to be disproportionately hit, like parks and recreation.”
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