As U.S. Economy Improves, Cities May Be Headed for Another Downturn

Governing: Cities may be facing a new period of economic stress -- even as the national economy continues to improve.

According to a National League of Cities (NLC) report released on Tuesday, municipal finance officers are expecting minimal growth this year -- less than 1 percent -- after dealing with slower revenue growth last year. If that happens, NLC Research Director Christiana McFarland says it would “be the first time we are seeing two consecutive years of slowing growth since the start of the recession.”

The report also reveals a decline in public officials' confidence in their cities' finances. This year, 69 percent said they are better able to meet the financial needs of their communities -- down from at least 80 percent in each of the last three years.

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