Video: Struggling economy leaves many cities and counties in limbo

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SNOHOMISH COUNTY, Wash. - The struggling economy is leaving many cities and counties in limbo.

They're trying to pass budgets for next year but don't know how much they can really afford to spend.

At the big new retail center in Snohomish, the smoothie shop is hoping for more customers.

It's the same story in historic downtown. Business at Queen Bee Home and Garden has been slow.

"We're all in the same boat, we're all feeling it, everybody's cutting back," business owner Debbie Gordon said.

Less spending means less sales tax for local governments, and in Snohomish that translates into an estimated $1 million budget shortfall.

At the county level, the news is even worse.

"We're $14 million short of what was estimated by the state and other financial experts," Snohomish County Executive Aaron Reardon said.

Reardon says all over western Washington cities and counties are struggling to put together their budgets. Estimates on sales tax revenue keep changing.

"This situation is not going to get any better," Reardon said. "It's gonna get worse before it gets better."

Statewide that means job cuts and projects like road repairs put on hold.

As sales tax projections change, some cities and counties keep re-writing their budgets. Snohomish's city manager says unless things stabilize they may re-examine their budget every month.