Cities Mark Fiscal Gain
U.S. cities are recovering from the recession even as they continue to face pressure from sliding property tax revenue, state budget cuts and rising employee costs, according to a report.
Fifty-seven percent of cities say they were “better able to meet financial needs’’ this year than in 2011, according to an annual survey by the National League of Cities released yesterday. It is the first time that most reported an improvement since before the 18-month recession began in 2007.
The fiscal strains on cities hurt the nation’s economic recovery, with local governments eliminating 549,000 jobs over the last four years as tumbling home prices hurt real-estate tax collections. Property taxes continued to slide in 2012, according to the survey, and cities may face fresh financial setbacks should the economy falter.