The Scary State of U.S. Municipal Finances

"Buffeted by steep drops in state aid, rising pension and health-care costs and sluggish property-tax revenue, many urban centers are struggling even several years after the financial crisis," reports Jeannette Neumann. 

"In Allentown, Pa., weak property values are starving the city of a primary source of cash. Springfield, Ill., has seen pension costs nearly triple in the past decade. Providence, R.I., raised taxes and fees and cut benefits to offset losses in state aid. Fresno, Calif., has so little available cash that officials worry one unforeseen event could reverse nascent improvements."