The 2024 City Fiscal Conditions report from the National League of Cities (NLC) reveals that municipalities are making the necessary shifts to continue to meet the fiscal needs of their community and are prepared for the loss of ARPA funds. In its 39th year, the City Fiscal Conditions report provides city leaders, policymakers and the public with a comprehensive analysis of the current fiscal landscape facing cities across the nation.
Key Highlights from the 2024 Report
- Economic Recovery Trends: Cities are rebounding from pandemic-related financial challenges, with many experiencing a surge in revenues thanks to robust economic growth and federal aid. More than 64% surveyed reported being better able to meet their financial needs in 2024 than in FY 2023.
- Post-ARPA Preparedness: Cities are preparing for life after ARPA with 65 percent reporting that they are either currently developing a plan or have a fully developed plan to navigate post-ARPA fiscal challenges.
- Investing in Public Safety: For the first time the report also analyzed the major spending categories for municipal budgets revealing that local governments have dedicated more than a quarter of their budgets to public safety.
A panel discussion about the release of the City Fiscal Conditions 2024 report featured key insights from speakers including Rebecca L. Fleury, City Manager of Battle Creek, MI; David Schmiediccke, Finance Director of Madison, WI; and Lisa J. Cipriano, Director of Budget & Evaluation in Newport News, VA. The panel also included Farhad Omeyr, Ph.D., NLC’s Research and Data Program Director, who emphasized that “Based on the results, we see that the overall health of the economy is in tip-top shape. Taxes, specifically property and sales, do not show any sign of slowing down, which is helpful for healthy fund reserves. These factors and more help governments be more positive about this year’s budget, and the approach for 2025.”
For more information about the report, visit https://www.nlc.org/resource/city-fiscal-conditions-2024/.