A well-established economic principle, called the "wealth effect," holds that consumers' spending is influenced more by their sense of well-being than by their incomes.   read more »

The Valley's smaller cities, burdened by a sluggish economy and the uncertainty of state money, are starting to worry. And it could get worse. State legislators trying to craft a spending plan are considering whether to borrow from cities.   read more »

With no budget agreement expected from Sacramento for at least the next few days, an increasing number of local governments have expressed their discomfort with the proposed seizing of local funds by state legislators.  read more »

Even casual readers of local news know how government services are at risk as California legislators struggle to balance the state budget.   read more »

CORNING ­ The Olive City joined California's municipalities in opposing the borrowing of local revenues last week when the City Council unanimously demanded that Sen. Sam Aanestad, Assemblyman Doug LaMalfa and Gov. Arnold Schwarzenegger speak out against the practice.  read more »

SAN MARCOS ---- Worried that state legislators will dip into city coffers to wash away the red ink in California's budget, the leaders of four North County cities gathered in San Marcos on Thursday to issue a collective objection.  read more »

Novato's budget problems have caused the city council to examine ways to increase revenue and cut costs. But on a state level, a number of cities have identified another problem with balancing budgets: Sacramento.  read more »

Town leaders are adamant the state won't get its hands on any of Danville's money, but with no sign of a state budget passing any time soon, the outlook is grim.  read more »

During Tuesday's City Council meeting, the council unanimously voted to adopt a resolution demanding the state of California not balance its budget by taking local taxes away from cities, counties, and special districts.   read more »

Sacramento politicians representing Barstow have voiced strong opposition to any plan to balance the state budget by taking city funds.  read more »