what have cities and counties done with the real estate taxes they have collected?

Now that prices and values of homes have fallen, cities, counties and states(?), are scrambling for ways to raise more income (many through higher sales taxes) so they can collect more of our hard earned money and waste it. When values were skyrocketing they collected a virtual windfall of income. Well, what did they do with it?? Did they waste all of that extra income. Cannot the governments not spend and spend and spend?

Public Comments

1. Every jurisdiction is different. In New Mexico, the property taxes mostly just pay for schools, but in Texas, they run their whole state on property taxes from schools, roads, health care, higher education and so on. It depends on which state you are referring to. Most cities get no cut of property taxes and depend solely on sales taxes.
2. I'm not sure where you live, but I am sure that like most public servants, the politicians in your area are very conservative with the money they raise from taxes and with the potential short-fall due to decreased property taxes, they are already making plans and concessions to further restrain their spending and reduce any possible waste. I'm certain they've reduced their own wages, reduced their own benefits, and cut any frills that may come with their position. In these hard times we all have to "bite the bullet" and I'm sure your political leadership is setting an example and showing strong fiscal responsibility. (Note to a majority of Yahoo readers...the above was sarcastic).