Cities Preparing for Lower Revenues

As recession-reduced property tax levels begin to play out in cities across the U.S., municipalities are beginning to react to the realities of lowered revenues.

1 minute read

December 5, 2010, 5:00 AM PST

By Nate Berg


Local governments are expected to see shortfalls of about $83 billion, according to this column from Neal Peirce.

"Will "higher" governments help out? Not likely right now. Washington will be focused on deficit trimming. States have their own budget nightmares. And then there's raw partisanship. Republicans made net gains of six governorships and some 680 legislative seats in the mid-elections; even if commiserate with cities, they'll fear Tea Party retribution if they lift a finger to help.

If there's any good news, says Chris Hoene, the National League of Cities' fiscal guru, it's that actual city bankruptcies remain rare, that over 90 percent of localities are balancing their budgets - so far. And that while some mayors see massive layoffs coming, others say they're using this moment to clean up inefficient bureaucracies."

Sunday, December 5, 2010 in Citiwire

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