Rather taxing...

Bankruptcies of retailers => Lower sales revenues & Mall Operators under pressure => lower sales tax dollars

Higher foreclosures => lower real estate taxes

The dough that funds local K-12 education and public works projects is getting short...States are under pressure, which is why even Republican Governors are supporting Obama's FiSt (Fiscal Stimulus) plan. Real estate tax rates are likely to go up for those who have not lost their homes...

The question- how long can "local" taxes pay for education and other services, before massive borrowing occurs? And it was massive borrowing that brought about the current mess.