Cities are more likely to use money to replace lost tax revenues than to spend on infrastructure, according to a National League of Cities report.
Two-thirds of cities expect to use American Rescue Plan Act money to cover lost revenues as city financial officers budgeted for continued revenue declines in fiscal 2021, according to the National League of Cities’ annual fiscal survey.
The findings, included in the report released Tuesday, underscore how important federal funding has been for municipalities as they weathered the economic impacts of the coronavirus pandemic, said Clarence Anthony, NLC’s CEO and executive director.
The $46 billion distributed directly to cities through ARPA “is a game changer,” he said as he spoke Tuesday at a panel discussion about the NLC report.
by ANDREA NOBLE
OCTOBER 5, 2021