The Economy & Meeting City Fiscal Needs
City fiscal conditions in 2011 continue to weaken, but city finance officers’ perceptions may reflect a “new normal” in terms of their assessment and expectations of meeting nearer-term financial needs.
Revenue and Spending Trends
Revenue and spending shifts in 2010 and 2011 portray a worsening fiscal picture for America’s cities.
Factors Influencing City Budgets
A number of factors combine to determine the revenue performance, spending levels and overall fiscal condition of cities.
City Responses
The most common city responses to declinging fiscal conditions are personnel cuts and delaying and/or cancelling infrastructure projects.
Reduced State Aid
Cuts that states are making reduce aid and transfers to city governments.
Ending Balances
Cities can prepare for future fiscal challenges by maintaining adequate levels of general fund ending balances.
Beyond 2011
The fiscal realities confronting cities include a number of persistent concerns.