Today, NLC released the City Fiscal Conditions in 2008 report, which finds a troubling combination of developments that will likely affect the financial health of cities over the next several years.
Just as American families are facing economic stress from rising costs, increasing health care premiums, and a collapse in home prices, American cities seem to be facing the same fiscal burdens.
"Cities are getting hit with an alarming wake up call about city budgets," said NLC President Cynthia McCollum, council member, Madison, Ala. "Because of these declining financial factors, cities are going to have difficulties meeting budget requirements with their normal revenue streams this year. Cities, however, have prepared responsibly and many have historically high rainy day funds to get them through these tough economic times."
The report found that the decline in property tax …