Main Home | 2009 Fall Report Home | Cluster Profiles | Surveys | Talking Points
Survey Highlights
The majority of cities hit by the recession – less able to meet local needs
The recession has impacted cities’ ability to meet local needs.
- Nearly two of three cities (63%) say local economic conditions changed since one year ago (summer 2008 compared to summer 2009).
- 59% of cities believe they will be less able to meet financial needs next year (FY 2010) compared to this fiscal year (FY 2009).
Cities are cutting essential services and capital investments
By June 2009, 36% of cities report they re-opened the budget or decreased expenditures due a reduction in revenues. Another 31% said they had not yet done so, but it was likely before the end of the year.
Of these cities, the largest spending decreases are in infrastructure and general government spending (which for many cities includes programs funded from the general fund such as parks, permitting, etc.).
- 60% of cities re-opening the budget are decreasing infrastructure investments.
- 46% of cities re-opening the budget are reducing spending on public safety.
- 49% of cities re-opening the budget are reducing their scope of services.
Cities are cutting staff costs
City employees provide the services that define local government. Nearly three out of five dollars of cities’ operating budgets are spent on staff salaries and benefits. However, cities are making deep staff cuts.
- 44% of cities implemented a hiring freeze either when the 2009 budget was adopted or after they entered FY 2009. Another 8% plan to do so in the second half of 2009, bringing the total to more than half (52%) of cities.
- 25% of cities laid off employees in order to balance the 2009 budget or in the first half of 2009. An additional 7% planned layoffs later this year, bringing the total to nearly one-third (32%) of cities.
Cities are spending down reserves
Good fiscal management means putting money in reserves during good times, and using it in hard times. Many cities are using reserves to weather this recession.
- 55% of cities report an increase in the use of ending cash balance over the previous four years.
- 35% report using more operating reserves compared to the previous four years.
- 35% report using more capital reserves compared to the previous four years.
Cities are deferring vital infrastructure investments
Nearly 40% of cities decreased their capital budgets. Streets are one of the areas that will be hardest hit.
- 31% of cities making cuts report that the street department received the biggest cuts (in dollars) in this year’s budget.
Part I Survey Results (pdf, 177 kb)
Part II Survey Results (pdf, 102 kb)
City Survey Participants (pdf, 78 kb)
Responses to Part I (select questions)
(Excel, 53 kb)
Responses to Part II (select questions)
(Excel, 73 kb)