National Survey Shows Cities Continue to Struggle

Results of a nationwide survey of local governments reveals widespread  economic challenges still being faced by municipal officials.

DUBLIN, Ohio, Nov. 23, 2010 /PRNewswire-USNewswire/ -- Despite assurances from leading economic advisors that the "Great Recession" has officially ended, 87 percent of America's municipalities are struggling with flat or declining revenues.  Sixty-one percent are resorting to hiring freezes and layoffs, and 54 percent have delayed or cancelled capital projects to make ends meet according to a national survey released this week from Governing Dynamic, LLC.  In addition to cutting back, 68 percent of cities have discussed tax or fee increases to maintain current services.  

"It is clear cities are still feeling effects of the national recession and municipal leaders are running out of good options for further streamlining their operations.  They're having to make some very difficult decisions," explained Brett Sciotto, CEO of Governing Dynamic, the firm responsible for the survey.  

The survey also found municipalities are weathering a perfect storm of additional pressures created by cuts in state budgets, understaffing, and difficulty funding critical capital projects. Seventy-six percent of cities reported being negatively affected by cuts in their state's budget and 33 percent stated that capital investment in infrastructure was reduced from 2009. Forty-four percent report being understaffed and express difficulty maintaining current levels of service with their existing personnel.

Cities are also dealing with increased pressures resulting from citizen hardships like poverty, foreclosures and vacant housing. Fifty-eight percent of cities indicate moderate to severe poverty and 64 percent report moderate to severe challenges from foreclosures. Fifty-nine percent indicated moderate to severe problems resulting from vacant housing and buildings in their community.

One bright spot was the American Recovery and Reinvestment Act of 2009. Sixty-seven percent of cities report receiving a direct benefit for their community from Stimulus dollars.

These findings were published in Governing Dynamic's 2010 National Survey of Cities, which analyzed responses from more than 600 cities from all 50 states.  

A complete copy of the survey results can be downloaded at www.GoverningDynamic.com/2010NSC.

About Governing Dynamic, LLC

Governing Dynamic is a for-profit consulting firm providing government leaders with public opinion research, strategic planning facilitation, public policy development and communications tools to help them be more responsive to their citizens while governing effectively and efficiently.

SOURCE Governing Dynamic, LLC