Federal Dysfunction Imperils Improving City Finances

A new report from the National League of Cities shows municipal revenues climbing across the U.S. in the aftermath of the worst economic crisis in decades. But pension and health costs, and federal budget issues, are causing concern.

"Fiscal conditions are slowly improving for American cities, aided by increases in sales tax and income tax revenue, but rapidly rising pension and health costs for city workers continue to pose a potentially crippling threat, according to an annual study [PDF] released Thursday by the National League of Cities," reports Rick Lyman. 

“Looking to 2014 and beyond, all indications point to improving conditions for city budgets, with national economic indicators pointing to continued slow growth,” the report concluded. “External factors, however, could easily undermine cautiously optimistic projections, including, most notably, the possibility of federal budget cuts.”

"The outcome of those external factors will have a major impact on whether cities can sustain this fiscal momentum," says Lyman.

Full Story: Cities Report Better Finances, but Worries Persist

Comments

Book cover of the Guide to Graduate Planning Programs 4th Edition

Thinking about Grad School?

New! 4th Edition of the Planetizen Guide to Graduate Urban Planning Programs just released.
Starting at $24.95

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $209

Stay thirsty, urbanists

These sturdy water bottles are eco-friendly and perfect for urbanists on the go.
$19.00
Wood necklace with city map

City Necklaces

These sweet pendants are engraved on a cedar charm with a mini map of selected cities. The perfect gift for friends and family or yourself!
$28.00