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The nation's cities saw improved finances in 2007 but now project slowing revenues and increased spending pressures for 2008 and beyond, according to the National League of Cities' annual research brief on America's cities.
Seven in 10 city finance officers report their cities are better able to meet fiscal needs in 2007 than in 2006--but revenues next year are expected to grow by a mere 0.4 percent in inflation-adjusted dollars while expenditures are projected to increase by 3.5 percent.
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While city tax bases are in relatively good shape, the research brief points to employee wages, infrastructure needs, public safety needs, health benefits, pensions, and inflation as creating budgetary pressure in the vast majority of cases. Additionally, more cities reported reduced federal aid than ...
Source: HighBeam Research, Worsening outlook for local governments.(News & Numbers)(reports...