Cities and State Fiscal Structure

The fiscal systems of cities are defined by the states in which they are located. These systems can create an environment that either allows municipalities to fund their share of resident needs and to thrive economically or constrains the ability of cities to balance budgets and deliver basic services. This report examines how the key components of these systems (fiscal authority, revenue reliance/capacity, state aid and tax and expenditure limitations) are structured across states

Citites And Unequal Recovery: Local Economic Conditions Survey 2015

Even as economic conditions in cities have improved in the years since the Great Recession, a new study from the National League of Cities (NLC) found that many factors -- including lack of affordable housing, poverty, and skill and achievement gaps -- are impeding the long-term economic sustainability of cities. "Cities and Unequal Recovery," an analysis based on a survey of more than 250 city officials from cities of all sizes, uncovers dual realities in cities, where even as conditions improve, persistent challenges prevent the benefits of this growth from reaching many. The survey found that nearly all cities saw economic improvement in the past year, with 28 percent of city officials reporting vast improvement and 64 percent reporting slight improvement. Drivers of growth -- including new business startups, business expansions, property values and retail sector health -- starkly contrast with the reality of many residents on the lower rungs of the economic ladder. Skills gaps, lack of affordable housing and the rising demand for basic needs, like food and shelter, reveal that while economic conditions are improving for some, they are worsening for others

Performance Management: A Guide for City Leaders

We are pleased to present, Performance Management: A Guide for City Leaders, a report written and published as a service to NLC members and all cities. This guide presents an overview of existing performance management best practices with an eye toward the future of service delivery in cities. We also aim to empower more city leaders to launch performance management programs in their own cities.Performance management and data analytics in general are key aspects of the continued shift toward data-driven decision-making in cities nationwide. Data-driven decisions help local governments provide city services that are efficient, effective and driven by community priorities. The value of making data- driven decisions is imperative as many cities continue to face the post-recession realities of decreased city revenues, limited intergovernmental aid and reduced municipal workforces. At the same time, there is a growing trend towards openness and making the inner workings of municipal governments more accountable and transparent.Looking to the future, as advanced data analytics and open data become more prevalent in cities, there will be more opportunities to prepare and predict service needs of constituents. We plan to continue highlighting the importance of this epochal shift in city governance through our City of the Future initiative that seeks to advise cities on coming trends and opportunities. Within the Center for City Solutions and Applied Research we strive to strengthen communities, transform and improve cities and assist city leaders.Performance Management: A Guide for City Leaders was developed through staff interviews and surveys with a cross-section of large cities across the United States. This work was supported financially by a grant to the National League of Cities Institute by The Pew Charitable Trusts. We join the authors in thanking the city officials who helped make this work possible, and welcome comments and thoughts from readers, as we continue to work to help city leaders lead

City Rights in an Era of Preemption: A State-by-State Analysis

In a new report, NLC finds that states limit city power through preemption in a number of policy areas, ranging from labor protections to taxing authority.Preemption is the use of state law to nullify a municipal ordinance or authority. In some cases, preemption can lead to improved policy statewide. However, preemption that prevents cities from expanding rights, building stronger economies, and promoting innovation can be counterproductive when decision-making is divorced from the core wants and needs of community members

State of Cities 2016

As the economy rebounds and fiscal health stabilizes, mayors across the country are using their State of the City speeches to tout the progress their communities have made through hard work, innovation and collaboration. The State of the City speech is a mayor's opportunity to reflect on the city's recent accomplishments, current challenges and roadmap for the future. Its words provide unique insight into the state of municipal leadership, revealing the issues that matter most to city leaders.In 2016, mayors are focusing most on economic development, public safety, budgets, infrastructure and housing as broad strategies to advance their cities. The prominence of these top-line issues, or those receiving what we call "significant coverage" within mayors' speeches, has been consistent in the three years since we started the analysis. Economic development has been the most widespread issue addressed by mayors in 2014, 2015 and 2016. Infrastructure, public safety and budgets have remained in the top five, and education and housing have vied for a spot in the top rankings over the past few years

City Fiscal Conditions 2015: 30th Anniversary

This year marks the 30th edition of the City Fiscal Conditions survey of city finance officers. Based on the rich historical data accumulated over three business cycles, this year's report provides an important retrospective and comparative analysis of fiscal impacts resulting from the 1990, 2001 and 2007 recessions, in addition to our annual analysis of current fiscal conditions. In 2015, the fiscal condition of U.S. cities continues to show modest improvement. City finance officers are more optimistic than ever, driven largely by an expansion of General Fund revenues. These recent gains, however, have not been substantial enough to restore the revenue declines of the six years prior. When compared to the 1990 and 2001 recessions, it is clear that the fiscal impacts of the 2007 recession are much more substantial, both in terms of depth and duration

Paying for Local Infrastructure in a New Era of Federalism: A State-By-State Analysis

Despite the fact that infrastructure is a critical part of daily life for all Americans, the infrastructure deficit in the United States grows with each passing day. The National League of Cities (NLC) today released a new report on the ability of cities to address the nation's growing infrastructure challenges. The costs of building, operating and maintaining road, transit and water/wastewater systems are falling increasingly to local governments with the decline of state and federal funding, an increase in mandates and a misalignment of priorities. In this era of "new federalism," local governments have assumed a greater responsibility to meet their infrastructure needs, but much of this devolution of responsibility has come without authority to raise funds locally."Paying for Local Infrastructure in a New Era of Federalism" shows that cities need a more deliberate approach that recognizes the central role of infrastructure in the success of our nation's economic engines. To achieve this, cities need strategic and predictable investment from federal and state governments; better communication between cities and states on funding priorities; and greater local authority to raise revenue and implement creative solutions with multi-sector partners."A new federalism - where cities are leading in addressing the nation's most critical challenges - is emerging," said Clarence E. Anthony, National League of Cities (NLC) CEO and executive director. "Despite the fact that cities have increased responsibility for our nation's infrastructure, most states limit the ability of localities to raise revenues to meet their communities' needs. It's critical that local governments have the funding and decision-making authority they need to bring our infrastructure into the 21st century, and enable American cities to be competitive on the global stage." The report presents a state-by-state analysis and comparison of local tools to fund infrastructure, including local taxes and fees and emerging mechanisms such as state infrastructure banks and public-private partnerships. It is the second annual collaborative project with the state municipal leagues, and is based on federal, state and local government data as well as a survey and interviews with state municipal leagues.

City Fiscal Conditions 2016

In the wake of a slow recovery, the fiscal condition of U.S. cities is strengthening. The nation's city finance officers widely report improved fiscal health, driven by better-than-anticipated General Fund revenue growth and solid performance of ending balances.Each year, the National League of Cities surveys city finance officers about actual and budgeted revenues and expenditures as well as policy actions and priorities. Taken together, their responses provide a snapshot of the "average city" within the municipal sector