A survey of city officials by the Washington-based National League of Cities (NLC) found that 84 percent of respondents reported facing fiscal difficulties, the highest percentage since NLC began taking surveys in 1985. What's more, 92 percent of the respondents said they expect to have trouble meeting their cities' needs this year.
In response to the hard times, cities are implementing hiring freezes and layoffs, delaying capital expenditures and cutting services, according to the report. "Cities are responding as best they can," NLC Executive Director Donald Borut said in a statement. "Their citizens have increasing needs for services just at the same time that revenues are declining. Cities are implementing creative solutions and making very difficult decisions amid rapidly changing economic circumstances."
Also, because city finances tend to lag behind the overall economy by 12 to 24 months, the financial downturn is expected to continue to affect municipal budgets at least through most of 2010. View the entire report as a PDF.
