Chart of The Week: Budget Woes Are Not Just Federal

Cities have been hit hard by the economic downturn.  Many are facing huge budget gaps that must be closed in order to balance their books as required by law, unlike the federal government. The bar chart shows the decrease in spending after 2007, but also the greater negative change in general fund revenue:

Source: National League of Cities

In order to make up the difference cities are using personnel and capital project cuts most often to reduce spending, while increasing taxes and fees to increase revenue: