The Metropolis Fiscal Circumstances 2021 gives perception into the affect of the COVID-19 pandemic and proactive federal coverage on metropolis funds. This yr’s evaluation of survey and financial knowledge from 444 cities finds that on stability, cities ended FY 2020 with the primary occasion of income loss because the Nice Recession, and budgeted additional decline for FY 2021.
Steep declines in gross sales and earnings tax revenues had been among the many main causes of income loss within the sector. Though important, these losses pale compared to what might have been with out federal intervention. The report’s findings present that federal help has been instrumental in serving to cities get well from the pandemic and contributing to a extra optimistic financial outlook.
Because of the disparate affect of the pandemic on cities throughout the nation, about one in two cities budgeted uncharacteristically sizeable income swings over the previous yr, with about 20% budgeting for higher than 5 proportion factors development and 30% budgeting for higher than 5 proportion factors decline.
Obtain the report to dive deeper into the survey’s outcomes and municipal finance tendencies from the previous yr.
Supply: NLC evaluation of information collected for 373 cities from Annual Complete Monetary Studies for fiscal years 2020 and 2021.
The map above demonstrates the numerous fluctuations in revenues that cities anticipated over the previous fiscal yr with:
- Optimistic FY 2020 – FY 2021 (budgeted) income adjustments in purple
- Unfavorable adjustments in yellow
- Darker shades indicating stronger development or decline
- Bubble measurement indicating the dimensions of the town’s FY 2021 normal fund
For an entire record of metropolis governments included within the map, obtain the information here.