Financially-strapped cities cut jobs, services

Image via WikipediaBelt-tightening continued in cities across the United States in 2011, as fiscal crunches forced local governments to cut back.

City revenues are projected to decline 2.3% by the end of 2011, according to a new report from the National League of Cities released Tuesday, marking the fifth straight year of declines.

One of the main factors contributing to the decline in revenue is a drop in property tax collections, which are projected to fall by 3.7% in 2011, the second straight year of declines. Last year's drop of 2.0% was the first year-over-year decline in city property tax revenues in 15 years.

To make up for the shortfalls, cities reported numerous job cuts, canceled infrastructure projects, cuts in services like libraries and parks and recreation programs, and modified health care benefits for employees. More...