MarketWatch: Cities Say Finances Have Improved, but Uncertainty Lingers
The National League of Cities’ annual survey of cities’ financial officers released Thursday revealed a projected year-by-year uptick in general funds for the first time since 2006—a finding that experts met with cautious optimism.
City governments get about one-third of their money from state and federal governments. Typically the federal share amounts to 5%, said Kil Huh, director of state and local fiscal health at the Pew Charitable Trusts.
Local governments, Huh said, often are forced to dip into reserve funds that only last a limited time and could suffer if the federal shutdown persists.
“The Great Recession brought up the need to strengthen reserve funds,” Huh said. “Lawmakers are now thinking of ways to deal with uncertainty in a more effective way.”
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