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
An Inside Look at Making L.A.'s Difficult Decisions in a Time of Austerity
LA Councilmember Paul Krekorian discusses reducing the city's budget deficit, the impacts his decisions will have on core services and civil servants, and the tolls that come with taking on a budget crisis during a period of fiscal austerity.
Philly Suburb Cities Feeling the Pinch
Townships surrounding Philadelphia have managed to survive the recession until now, but city coffers are now going into the red and cities are being forced to take action.
Seattle Makes Historic Affordable Housing Investment
While the 2024 budget plan invests in housing and social programs, city leaders warn the city will face a shortfall of almost $250 million in 2025.
Seattle Legalizes Co-Living
A new state law requires all Washington cities to allow co-living facilities in areas zoned for multifamily housing.
Central Florida’s SunRail Plans Major Expansion
The expanded train line will connect more destinations to the international airport and other important destinations.
Las Vegas Golf Course to Become Over 1,000 Units of Affordable Housing
The project is part of an initiative to build affordable housing on shuttered golf courses.
Cities and States Taking Action to Limit Rent-Setting AI
Federal prosecutors are charging a software company with using algorithms to artificially inflate rents.
BART to Raise Fares in January
The transit agency says it needs more state and federal support to meet its operating costs and avoid a growing budget gap.
Montreal Bike Share Breaks Ridership Record With 13 Million Rides
The Bixi system introduced a winter pilot project last year, leading to a rise in winter cycling.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
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City of Culver City
Skagit Transit
American Planning Association, Sustainable Communities Division
HUDs Office of Policy Development and Research
HUDs Office of Policy Development and Research
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