Foreclosure Crisis Trickles Down: Report

A new report from New York State Comptroller Tom DiNapoli says the national foreclosure crisis is hitting every level of government. WNYC's Bob Hennelly has more.

REPORTER: Comptroller DiNapoli's analysis found that having tens of thousands of New Yorker's homes in foreclosure is putting downward pressure on property values across the board. And for every five percent drop in property values, local governments stand to lose more than $1 billion in property tax revenue. As a result, municipalities, which are responsible for funding public schools, would have to raise property taxes to make up for the shortfall at a time when taxpayers find themselves over-extended.

Rising foreclosures and delinquencies also constrict local governments actual cash flow because property taxes go unpaid along with unpaid mortgages. DiNapoli's report says the most dramatic jumps in foreclosures are in the state's North Country, followed by the Albany region. For WNYC I am Bob Hennelly.