Friday, November 6, 2009

States Need New Response to Economic Decline, Report Shows

Published Tuesday, July 22, 2008

As the economy continues to decline, states may begin to make budget cuts that could affect local government funding. However, a new report from the Washington-based National League of Cities suggests a new approach may be in order. During the brief recession in 2001, cities suffered from cuts in state revenues and state takeaways from local revenues. In his NLC report, "Cities and State Fiscal Structure," Michael Pagano, dean of the College of Urban Planning and Public Affairs at the University of Illinois at Chicago, says that states should instead try different ways to structure local revenue authority ...

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