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Terrorist Attack Taking Toll On California Economy

As the impact of last month´s terrorist attacks ripples through the Bay Area´s economy, communities are considering cuts to public programs. There´s also the possibility that some workers could be furloughed.

San Francisco depends heavily on hotel taxes and tourist spending. It could eliminate new programs such as hepatitis health education and tree planting. In San Jose, spending on parks, recreation programs, sewer maintenance and stop lights are under

scrutiny.

Officials across the San Francisco Bay area are bracing for even worse times next fiscal year, which begins in July. But Santa Cruz Mayor Tim Fitzmaurice sees trouble sooner than that. He says the city might not have the money to do basic city business.