The financial hits keep on coming for cities such as San Leandro and Hayward, and for Alameda County.

Declining state sales tax revenues in the first quarter of 2009 prompted the state Board of Equalization on Friday to send letters to hundreds of California cities and counties.

The bad news: The state is reducing local allocations in May sales tax advances.

San Leandro will receive $1 million, down $241,559 from what the city expected. Hayward's allotment will be $1.2 million, down $308,177 from what it expected.

County unincorporated areas that produce sales taxes, such as Ashland, Castro Valley, Cherryland, Fairview and San Lorenzo, will have a return of $784,300, down $189,000 from what was anticipated.

The county, along with separate health care and transportation agencies, including BART, also may be assessed millions of dollars in further sales tax cutbacks for the month.

The Board of Equalization makes monthly allocations to 768 local jurisdictions, such as cities and counties, based on a formula that includes historical allocations, growth adjustments to the base amount, and actual cash receipts, when the latter amount is available.

A decrease in expected cash receipts led to the downward monthly allocation for May, board spokeswoman Anita Gore said. The board, which collects more than $53 billion a year in taxes and fees, expected first-quarter taxable sales to be 7.4 percent lower than the first quarter of 2008. Actual cash receipts came in 18 percent lower.

The county, San Leandro and Hayward were among 473 government agencies out of the 768 jurisdictions to receive reduced or no advances.

Reach Karen Holzmeister at 510-293-2478 or kholzmeister@bayareanewsgroup.com.

Falling short
State sales tax advances for May will be lower than many municipalities were anticipating. Among those taking hits in Alameda County:
  • Hayward -- $1.2 million ($308,177 less than expected)
  • San Leandro -- $1 million ($241,559 less than expected)
  • Unincorporated areas -- $784,300 ($189,000 less than expected)