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.
Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto
The Tesla Cybertruck was recalled seven times last year.
National Parks Layoffs Will Cause Communities to Lose Billions
Thousands of essential park workers were laid off this week, just before the busy spring break season.
Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50
A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.
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Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto
The Tesla Cybertruck was recalled seven times last year.
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