Thursday, October 7, 2010

National League of Cities Research Brief on America's Cities

Link to 8-page report.

Link to AP article in October 7 Atlanta Journal-Constitution, "Housing slump hammers local government tax revenue".

Excerpt: City tax revenues dropped this year by the most in 25 years, hit hard by falling home prices that could crimp local budgets for years to come.

Property tax revenue in U.S. cities fell 1.8 percent in fiscal year 2010, according to a report released Wednesday by the National League of Cities. It's the first drop in the 25 years that the survey has been conducted.

Depressed home values are just beginning to affect property tax receipts and the impact could linger for at least two more years, the report said. The declines are only now being felt because real estate assessments lag changes in market values.

City governments are already facing tough choices between spending cuts and possible tax increases. Many are laying off workers and cutting services to make up for lost revenue. Strapped city budgets could increase already high unemployment and further restrain economic growth

No comments: