blockitecture leaderboard

Local Governments Struggle Even As Private Sector Recovers

Though private sector employment shows signs of recovery, the National League of American Cities predicts 500,000 municipal workers will lose their jobs over the current and coming fiscal years. The Economist considers solutions.

According to The Economist, decreased revenues from property and sales taxes and increased costs from boom time pension promises based on "wildly unrealistic investment assumptions" have left many cities running budget deficits. The Economist says most municipalities eventually turn to staff cuts to bridge the gap.

A recent forum by the Miliken Institute suggested other measures local governments might take, says the Economist:

"Municipalities should adopt better accounting standards, dole out saner pensions and start rainy-day funds-all of which might help in recessions yet to come. They might put fewer people in county jails or broaden their revenue base by extending sales taxes to services (which many currently exempt). They might even merge with other municipalities to eliminate duplication of services...The other option is to ask the federal government for help, though given the mood of the electorate regarding stimulus and bail-outs, that would be controversial."

Full Story: Municipal troubles: All economics is local

Comments

building block set

NEW! Build the world you want to see

Irresistible block set for adults when placed on a coffee table or desk, and great fun for kids.
$25
Red necktie with map of Boston

For dads and grads: tie one on to celebrate your city!

Choose from over 20 styles imprinted with detailed city or transit maps.
$44.95

Stay thirsty, urbanists

These sturdy water bottles are eco-friendly and perfect for urbanists on the go.
$19.00

NEW! City Map Posters

Available in 9 different cities.
$25.00