For First Time in Seven Years, Cities Anticipate Revenue Decline
Sunday, December 01, 2019
In the Los Angeles suburb of Bellflower, California, officials are getting the city budget ready for a slowdown by tightening spending and beefing up reserves. For the past five months, the state’s fiscal health index has been trending downward, a shift that Mayor Pro Tem Juan Garza said weighs heavily on the city’s own forecasting. “For California to be experiencing that,” he said, “it’s an indicator of not only what California is going to experience, but also the rest of the country.”
In fact, for the first time in seven years, cities across the country are collectively anticipating a decline in revenue as rising concerns over trade, weakening economic indicators, and increasing spending pressures are taking their toll on city budgets.