Fiscal Crisis Trickles Down as States Cut Aid to Cities

The National League of Cities report expands upon an earlier survey in which respondents said they expect revenues traditionally returned to cities and towns by states to decline by an average of 2.1 percent during 2003. The report indicates that states cut aid to cities and towns by a total of $2.3 billion in the current fiscal year and comparing 2004 to 2003 figures, the $2.3 billion in state cuts represents a 9.2 percent decline in state revenues for cities.