Gavin’s Flaccid Package

Stimulate this!

Mayor Gavin Newsom unveiled his economic stimulus plan this week revealing a flaccid response to very recent economic woes.

1. Payments from state and federal governments to S.F. are down

2. Property transfer tax revenue is down. From $6.7 billion (gross sales, not the revenue from the transfer tax) in calendar 2007 to just slightly over $1 billion for the first 8.5 months of 2008.

3. SF will be affected by the general macroeconomic slowdown.

4. Retail sales are down in S.F.

5. Business tax revenue will go down.

6. The newly strengthened dollar will hurt S.F., like reduced tourism for example.

The most recent economic data released by the Controller’s Office shows the city’s unemployment rate was at 5.9 percent in August; a year ago it was at 4.6 percent. Still, the state’s unemployment rate, for example, was 7.7 percent in August.