More Cities Report Worse Economic, Fiscal Conditions than Improved Ones, NLC Finds

Preliminary findings from an annual survey conducted by the National League of Cities (NLC) reveal economic and fiscal conditions are worsening in many of America's cities and towns. A large segment of those surveyed by NLC also reported improvements in areas such as the vitality of their downtowns, increased efficiency in service delivery, and preparedness for emergencies and homeland security. The 345 respondents in the survey, State of America's Cities, reflect a nationally representative sample.

Responses from the surveyed cities and towns indicate that both overall economic and fiscal conditions have worsened over the past year more than they have improved, according to NLC data. Overall economic conditions worsened in 40 percent of cities, compared to 26 percent that said conditions improved. Roughly one-third of those sampled reported no change in their economic conditions. Forty-four percent said fiscal conditions have worsened, compared to 22 percent that reported improvement. Nearly one-third said they experienced no change in their fiscal conditions.

Worsening unemployment also was reported by many cities and towns. Of those surveyed, 45 percent reported unemployment conditions were worsening, while 18 percent said they were improving. Thirty-two percent said no change.

Two other issues emerged as problems among more than half the cities surveyed by NLC:

• Two out of three (65 percent) of all respondents say the effects of unfunded federal mandates and preemptions of local authority have worsened over the past year, while only 1 percent reported improvement. Thirty-one percent said no change.
• The cost and availability of health care has been a worsening problem for 60 percent, and 8 percent have seen improvements in that area. Twenty-nine percent said no change.

Not all was gloomy in the NLC survey, however. Improvements in the vitality of downtowns and main streets were reported by 49 percent of the cities, while 16 percent cited worse conditions. Homeland security and emergency preparedness improved in 42 percent of responding cities, compared to 9 percent reporting declines. The efficiency of municipal service delivery rose among 42 percent of respondents, as 8 percent reported declines.

The findings of the 2004 survey amplify the problems that surfaced in last year's NLC survey of city fiscal conditions, which found cities and towns are struggling with the most serious fiscal problems in at least two decades. More than half of the cities were said to be raising user fees for services, drawing down reserves, and cutting investment in infrastructure and maintenance, in response to their fiscal struggles. Others reported laying off city staff, including police and firefighters. (See the May 30, 2003, issue of the Digest for complete coverage of the 2003 survey.)

More than 3,000 delegates from cities and towns across the U.S. are expected to convene at NLC's Congressional City Conference in Washington, D.C. on March 7-9. NLC serves as a resource and advocate for 18,000 cities, towns and villages that collectively serve 225 million people. To access the NLC survey, visit http://www.nlc.org.