Recession Taking A Bite Out of City Budgets

Posted by: Tim Halbur

1 September 2009 - 2:00pm

A new report from The National League of Cities shows that declining property and sales income is impacting city coffers, resulting in layoffs and cuts to construction projects.

Sales tax income is down across the nation by an average of 3.8%.

"Overall city revenues declined by 0.4%, even as expenses rose 2.5%, and city officials expect steep drops in tax collections in the next two years, making for the worst outlook in the 24 years the group has been surveying its members. Western cities were particularly downbeat."

Full Story: Cities Brace for a Prolonged Bout of Declining Tax Revenues

Source: The Wall St. Journal, September 1, 2009