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Responding to New Data on Worsening Economic Conditions in Cities, NLC Announces 2010 Priorities
January 13, 2010While the nation's economy may be approaching the late stages of the worst economic downturn since the Great Depression, local government budget tightening and spending cuts over the next several years could well impose a significant drag on the nation's economic recovery. Cities face layoffs, canceled contracts with small businesses and vendors, reduced services, cuts in state aid, and sizable budget shortfalls for 2009 that are expected to grow much more severe and widespread from 2010 to 2012. To ensure city conditions do not slow the pace of economic recovery, the National League of Cities (NLC) board of directors at their meeting in Washington, D.C., last week called for more federal action to help cities accelerate job creation and stabilize their budgets. The board's action came in the wake of a new NLC report projecting the municipal sector will face budget shortfalls combined with cuts in state aid to range between $56 billion and $83 billion over the next three years. Federal investment through a jobs package would help stabilize city budgets allowing cities to save and create local, public and private sector jobs. Full release.