U.S. Cities’ Woes to Worsen as Taxes Trail Pace of Recovery

Bloomberg reports:

U.S. city officials say they expect to face further financial strains because tax collections won’t recover until after the economy emerges from the deepest recession since the Great Depression, a national survey found.

Eighty-eight percent of city finance officers said they are less able to cover the cost of running their governments than a year ago, up from 64 percent a year earlier, according to a survey of 379 cities by the National League of Cities between April and June. It was the most negative assessment since the survey began in 1986. Eighty-nine percent said the next budget year would be even worse.