From USA Today:
Battered by record foreclosures and falling tax revenue, cities are laying off workers, raising fees and closing libraries and recreation centers.
“Almost every city in the country is feeling the impact,” says Chris Hoene, director of policy and research at the National League of Cities.
A survey in September found that city finance officers expect revenue from property, sales and income taxes to decrease 4.3% this year, Hoene says.
The problem will be worse next year, he says, because there is a lag between current economic conditions and when they affect city revenue.
“Local officials know that if things are tight now,” he says, “tougher choices are coming.”
The survey found that 79% of cities expect their finances to worsen in 2009.
With Keller’s large reserve fund and the City Manager’s knowledge of the possible upcoming problems, I’m hoping we are in a good position for next year. I don’t have near the confidence in the School District.
Update: I posted this from work where I’m catching up and forgot to post the most important part:
Sally Reed of Friends of Libraries USA says cities are making the wrong cuts, closing libraries just as more people use their free services.
“It’s really backwards thinking,” she says. “They’ve become increasingly important, and yet libraries are the first ones cut.”
I stated basically the same thing during the Library controversy. In 2002 when the economy fell off here, the first thing we cut was Library Service, but a couple of years later we were to believe that we could afford to build a $10 million Library without a tax increase.