Skip to main content

More Than 2,100 U.S. Cities Brace for Budget Shortfalls Due to Coronavirus

Submitted by jhartgen@abi.org on

More than 2,100 U.S. cities are anticipating major budget shortfalls this year and many are planning to slash programs and cut staff in response, according to a new survey of local officials released today, illustrating the widespread financial havoc threatened by the coronavirus pandemic, the Washington Post reported. The bleak outlook — shared by local governments representing roughly 93 million people nationwide — led some top mayors and other leaders to call for greater federal aid to protect cities now forced to choose between balancing their cash-strapped ledgers and sustaining the public services that residents need most. The National League of Cities joined with the U.S. Conference of Mayors to conduct the early inquiry into the economic effects of the novel coronavirus, finding that many local governments are bracing for sharp declines in tax revenue as businesses shutter, workers lose their jobs in record numbers and tourism grinds to a halt. Nearly 9 in 10 cities surveyed — from smaller hubs with populations of fewer than 50,000 to the largest metropolitan areas in the country — signaled they expect a revenue shortfall. Among them, more than 1,100 cities are preparing to scale back their public services, the survey found. Almost 600 cities predicted they may have to lay off some government workers amid the crunch. And local leaders in 1,000 cities said the reductions probably would affect their local police departments and other public safety agencies.

Article Tags