Saturday , 19 August 2017


American Cities Feeling the Financial Pinch

 
The Age of Austerity has arrived with a vengeance in U.S. cities. City budgets shrank 1.9% in 2011 after 4.4% declines in 2010 and city revenues declined 2.3% this year for the fifth straight year of declines, according to the annual report from the National League of Cities. While tax revenue and state and federal aid decline, costs are increasing including pensions and health care. Cities have responded with layoffs, hiring freezes, pay cuts and service cuts. [A picture is worth a 1000 words so here are 11 charts that show just how bad the situation really is.] Words: 333
 

So says Gus Lubin  (www.businessinsider.com)  in an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. 

Lubin goes on to explain:

1. 57% of cities are “less able” to meet needs than last year (which was a terrible year)

57% of cities are

Image: www.nlc.org

2. Cities that rely on property tax are suffering most

Cities that rely on property tax are suffering most

Image: www.nlc.org

3. Revenue has declined for five straight years. Spending has plunged for two years

Revenue has declined for five straight years. Spending has plunged for two years

Image: www.nlc.org

4. Income tax and property tax dropped again this year

Income tax and property tax dropped again this year

Image: www.nlc.org

5. All costs are increasing from pensions to health care, while all revenue is decreasing from taxes to aid 

This is the crisis in a nutshell. All costs are increasing from pensions to health care, while all revenue is decreasing from taxes to aid

Image: www.nlc.org

6. There isn’t any silver lining for most cities

There isn't any silver lining for most cities

Image: www.nlc.org

7. A roaring 41% of cities have increased fees, while others have raised taxes and other measures

A roaring 41% of cities have increased fees, while others have raised taxes and other measures

Image: www.nlc.org

8. 72% of cities are making layoffs this year, on top off big layoffs for the past two years

72% of cities are making layoffs this year, on top off big layoffs for the past two years

Image: www.nlc.org

9. Austerity means no hiring, no raises, etc.

Austerity means no hiring, no raises, etc.

Image: www.nlc.org

10. Austerity also means less aid and services

Austerity also means less aid and services

Image: www.nlc.org

11. City coffers are dry — and remember that costs such as pensions are much higher than ever before

City coffers are dry -- and remember that costs such as pensions are much higher than ever before

Image: www.nlc.org

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*http://www.businessinsider.com/national-league-of-cities-revenue-collapse-2011-9#ixzz1ZAmiWOUC