The fiscal gloom hanging over U.S. cities and local governments will
lift slightly in 2013 as the pace of spending cuts slows, according to
an economic assessment presented on Thursday to a mayors' conference in
the U.S. capital.
Real state and local government spending will decline by 0.5 percent
this year, compared to a 1.3 percent drop in 2012, said James Diffley,
director of regional economics for IHS Global Insight.
"In the state and local government sector the pace of budget
tightening has eased slightly and revenues have begun to improve, but as
you all know all too well, municipalities remain under severe
pressure," he said.
In December, local governments shed 14,000 jobs, compared to state
governments that gained 4,000 jobs, according to the Labor Department,
showing that cities and counties continue to struggle with spending.
No comments:
Post a Comment