State of America’s Cities Survey on Jobs and the Economy Report of May, 2010

A report was put out by the National League of Cities through its Center for Research and Innovation. The following are interesting statistic from that report.

Despite upticks in some measures of national economic recovery, new data from NLC indicate that declining fiscal and economic conditions persist in America’s cities. Consistent with previous findings that local economic recovery is lagging and may in fact drag national economic recovery, the 2010 State of America’s Cities survey of local elected officials finds:

1) Three in four (75%) city officials report that overall economic and fiscal conditions have worsened over the past year.

2) Eighty-four (84%) percent of city officials report that unemployment has worsened over the past year and nearly nine in 10 say it is either a major (41%) or moderate (47%) problem for their community.

3) More than six in 10 (63%) city officials report that poverty has worsened over the past year; representing the largest percentage of city officials reporting worsened poverty conditions since the question was first asked in NLC’s 1992 survey.

4) To deal with the fiscal implications of these and other economic conditions, cities are reporting the following ways they are cutting their budget:

a) Seven in ten city officials report making cuts to personnel (71%)
b) Delaying or cancelling capital projects (68%)
c) Cuts to public safety (22%)
d) Reductions in healthcare benefits (24%)
e) Revisions to union contracts (22%)

Spending cuts, like those made to public safety, have not only immediate employment impacts, but also impacts on activities essential to the quality of life and safety, like crime prevention and fire response times. Personnel cuts can also delay cities’ responses during an economic recovery, as hiring and training personnel can take considerable time.

5) One in two (52%) city officials report that service levels will continue to decrease next year if city tax rates and fees are not increased. Confronted with difficult economic and fiscal decisions, city officials are split in their views about the future direction of the country. Fifty-three percent are very (27%) or mildly (26%) pessimistic about the direction of the country. Nearly half are also either very (6%) or mildly (40%) optimistic about the general direction the country is heading.

NOTE: Lauderhill is consistent with this report in that most of the areas where cities are reducing their budget applies, plus several other areas not mentioned here as well.