According to a new report by the NLC, cities continue to feel the effects of the economy. The 27th annual City Fiscal Conditions report shows that for the sixth straight year, city revenues continue to fall as financial pressures and cuts in state and federal aid continue to grow. Due to these pressures, cities are being forced to make personnel cuts, delay or cancel infrastructure projects and cut local services. However, the report did shed some positive light on fiscal improvement. Forty-three percent of city finance officers revealed they are less able to meet city needs than last year, compared to 57% in 2011 and 87% in 2010.

The most concerning issues for city finance officers are health care costs (81%), pension costs (77%), infrastructure costs (75%) and public safety demands (61%). The report also found that cities are taking action to ensure appropriate levels of funding by raising fee levels, decreasing human services spending and reducing spending for services like parks, recreation and libraries. Many city officials agree that financial hurdles will continue to remain for the foreseeable future.

For more information and the full report, please visit NLC.org.