NLC-2021年美国城市财政状况（英）-15页_4mb

Summary of City Fiscal Conditions 2021

Core Content

The National League of Cities (NLC) released the City Fiscal Conditions 2021 report, analyzing the financial impact of the COVID-19 pandemic on local governments across the United States. The report highlights the challenges cities faced due to economic downturns, changes in revenue sources, and the role of federal support in mitigating these impacts.

Main Points

• NLC Overview: NLC is the leading voice for American cities, representing over 200 million people. It focuses on research, innovative solutions, and collaboration between local and federal governments.

• Fiscal Impact of the Pandemic:

  • Cities experienced a significant decline in general fund revenues in FY 2020.
  • Most of these losses were expected to continue into FY 2021, though at a slower rate.
  • Cities had to implement budget cuts, hiring freezes, layoffs, and delayed capital projects to maintain balanced budgets.

• Revenue Sources:

  • Property taxes were less affected due to the lag in assessment and billing practices.
  • Sales and income taxes were more responsive to economic changes, experiencing sharp declines in FY 2020.
  • The Wayfair decision (2018) allowed cities to collect online sales taxes, helping to mitigate the impact of the pandemic on revenue.

• Federal Relief:

  • The American Rescue Plan Act (ARPA), passed in March 2021, provided $65.1 billion in direct relief to cities.
  • This support helped cities stabilize budgets, protect residents, and rebuild infrastructure and services.
  • The CARES Act (2020) also played a crucial role in supporting cities during the early stages of the pandemic.

• Fiscal Year Variability:

  • Cities have different fiscal year start dates, which affects how the pandemic's impact is measured.
  • Most cities' FY 2020 budgets only captured a few months of the pandemic, making the data more reflective of a pre-recession baseline.
  • FY 2021 budgets were prepared during the early stages of the pandemic, leading to conservative revenue estimates.

• Spending Trends:

  • General fund revenues declined by 1% in FY 2020 and were expected to decline by 2% in FY 2021.
  • Expenditures grew by 1.34% in FY 2020 compared to 2019, as cities sought to maintain operations despite revenue losses.
  • Cities like Bridgeport, CT, and Chula Vista, CA, reported significant declines in expenditures, primarily due to public safety cuts and capital project delays.

• Fiscal Resilience and Recovery:

  • Despite challenges, 65% of finance officers reported being better able to meet fiscal needs in FY 2021 compared to FY 2020.
  • Federal aid was cited as the most impactful factor in improving fiscal stability.
  • Infrastructure needs remained a major concern, with many cities unable to fund ongoing projects due to budget constraints.

• ARPA Spending Priorities:

  • 67% of cities prioritized replacing lost revenue.
  • 54% also focused on addressing negative economic impacts on households, small businesses, and nonprofits.
  • Some cities, like San Diego, allocated 100% of their ARPA funds to revenue replacement, while Boulder focused on immediate community needs and long-term projects.

• Lessons Learned:

  • Aligning fiscal structures with economic realities is crucial for long-term resilience.
  • State flexibility and federal support can significantly reduce the impact of economic downturns.
  • The CARES Act and ARPA demonstrated the importance of direct federal aid in stabilizing local economies.

Key Information

• Federal Relief: The CARES Act and ARPA provided $65.1 billion in direct support to cities, helping to stabilize budgets and prevent economic collapse.
• Tax Sources: Cities rely on property taxes, sales taxes, and income taxes, with the latter two being more elastic to economic changes.
• Fiscal Lag: Property tax collections lag behind economic changes, often reflecting values from 18 months to several years prior.
• Infrastructure Challenges: Cities face mounting infrastructure needs, with many pausing projects during the pandemic. ARPA funding has helped to restart these efforts in some areas.
• Fiscal Year Differences: Cities with different fiscal year start dates saw varying impacts from the pandemic, influencing how revenue and spending are reported.

Appendices and Data

• Appendix I discusses the lag between economic conditions and city fiscal responses, highlighting how property taxes are the most delayed.
• The report includes figures that illustrate year-over-year changes in revenues and expenditures, as well as spending priorities for ARPA funds.
• The 2021 survey provides insights into how cities are adapting to the economic challenges posed by the pandemic.

Conclusion

The City Fiscal Conditions 2021 report underscores the resilience of American cities in the face of the pandemic's economic impact, largely due to federal support and adaptation strategies. While challenges remain, particularly in infrastructure maintenance, the cooperative policies between federal, state, and local governments have laid a foundation for recovery. The report serves as a guide for future fiscal planning and highlights the importance of aligning local fiscal structures with economic realities.