Cities slash services in economic downturn

To meet their fiscal challenges, the report found that 67 percent of cities have cut jobs or enacted a hiring freeze while 62 percent have delayed or canceled capital projects. Only 14 percent have cut public safety so far, the report found.

To boost revenue, 27 percent of cities reported raising fees on services like water use and garbage collection; 25 percent hiked property taxes; and five percent raised their sales tax.

Even as city revenues have dropped, their wage, pension and health care costs have steadily climbed and will continue to do so even without an economic recovery, the report found.

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Posted in * Economics, Politics, City Government, Economy, Politics in General, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--