The National League of Cities recently released its annual 2023 City Fiscal Conditions Report, designed to provide valuable insights into the financial health of cities three years after the pandemic.
This year's report, based on a comprehensive analysis of data from 820 cities reveals four key takeaways that reflect the resilience and adaptability of city finances in the face of unprecedented challenges:
- Cautious budgeting resulted in better preparation: The cautious approach by many cities in 2023 yielded increased reserves and limited spending demonstrating that local governments remain good stewards of public dollars.
- Better able to weather inflation: Despite the challenge of inflation, the average city experienced more than a six percent increase in general fund revenues. Inflation is more manageable, and cities are reaping some benefits of lower inflation.
- Federal aid had a positive impact on city budgets: Direct federal aid through the American Rescue Plan Act (ARPA) and the bipartisan infrastructure law was among the factors that had a positive impact on cities’ ability to balance their 2023 budgets.
- Planning for uncertainties: Making it through a strong 2023 fiscal year, our survey analysis reveals that many cities are still very cautious in their budgeting and planning for the current and next fiscal year, as they anticipate potential risks and uncertainties in the post-COVID era. Among the concerns for local leaders is the 'ARPA cliff' and the expected end of federal funding through ARPA.
To access a copy of the complete report, please visit:
Posts
No comments:
Post a Comment