Governing Magazine: Pew Study Outlines Impact State, Federal Cuts Had on Cities
By now, the fiscal stress facing cities has been well-documented. Though the recession began in late 2007, cities felt the impacts more slowly than the states and feds largely because they rely so heavily on property taxes.
Property taxes made them especially susceptible to the downturn in the real estate market, but it also impacted when the receission hit American cities. That's because there's a delay between when property values start to decline and when cities' assessments and ultimately taxes reflect those declines. It's also the reason why cities' recovery has happened more slowly.
A new study from The Pew Charitable Trusts reveals another way the recession uniquely impacted cities.
The retrospective look at cuts would also seemingly bolster the case for 2009's stimulus bill. "For many of these cities... a key component of their recovery came from increases in intergovernmental aid," said Kil Huh, director of Pew's State and Local Fiscal Health project, on a conference call with reporters.
Read the full article at governing.com.
- American Cities Project