Boom and bust in governmental revenue

There are a variety of concerns about the real estate boom. Some involve the increasing value of property and others concern growth and suburban blight. Either way, local governments are seeing greatly increased revenue from property taxes.

What are local governments in doing with all the extra property tax revenue they are taking in due to the unprecedented rise in housing prices? Where I live, they’re wasting it, and there is going to be hell to pay when the bubble bursts, tax revenues stagnate or even decrease, and prudent fiscal policy has long been thrown out the window. [David Bernstein. That Great Sucking Sound is Your Tax Money Vacuumed into the Public Schools. Volokh Conspiracy. 05mr21]

There seems to be no means to even out the highs and lows in government receipts. The goal seems to be to collect as much as possible and then spend everything collected. There are always things to spend money on. But why make it a habit?

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