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City finance officers were better able to meet financial needs in 2013 than in 2012 and, despite national economic indicators pointing to continued slow growth, improved conditions for city budgets are projected for 2014 and beyond. These are among the findings in the National League of Cities annual survey on city fiscal conditions. Sales and income taxes seem to be a bright spot for cities. In 2012, city sales tax receipts increased over previous year receipts by 6.2 percent, similar to growth levels seen prior to the recession.

A steady increase in personal income and sales taxes has helped state tax revenue in most states to surpass previous peak levels seen at the start of the recession. All regions of the country saw gains in the fourth quarter of 2011, with the exception of the Far West. The Plains had the largest gain, at 12.5 percent, followed by the Great Lakes states at 8.9 percent. However, tax collections for local governments are not faring as well mostly due to the lagged impact of falling housing prices on property tax collections. Findings are from a recent Nelson A.