National League of Cities

Study: Cities Facing Increased Financial Woes

The unprecedented economic conditions facing the nation are increasingly straining the ability of cities to meet their financial needs, according to a study released Wednesday by the National League of Cities. Precipitous drops in home prices have helped drain cities of much-needed tax revenue, leaving 84 percent of cities surveyed facing fiscal difficulties, up from 64 percent only 6 months ago, the group said. The 84 percent figure is the highest percentage in the history of NLC’s surveys, dating back to 1985.