Four out of five cities face financial trouble

Jeremy Elwood, SBJ ReporterIt’s like the introduction to a bad TV commercial: Four out of five cities say the recession is bad for their health.

The latest survey from the National League of Cities shows that 84 percent of cities are having trouble meeting their financial needs. It’s the highest number citing fiscal strain since the group started surveying its members in 1985.

The solutions to the problem are similar to what Springfield is facing right now; 69 percent of cities have instituted hiring freezes or layoffs, 42 percent are delaying or canceling infrastructure work, and 22 percent have implemented across-the-board cuts. Nearly half are also increasing fees for services.

The worst part: Those numbers may be the good news. The league says city finances tend to lag behind the overall economy by anywhere from 12 to 24 months, meaning cities will likely feel the crunch through most of 2010. About 92 percent of city leaders feel they will be less able to meet needs in 2009 than in 2008.

At least Springfield city leaders can take solace in the fact that misery – even financial misery – seems to love company.

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