2021-10-23-NLC-2021年美国城市财政状况_15页_4mb

City Fiscal Conditions 2021 Summary

Executive Summary

• The COVID-19 pandemic severely impacted city finances in 2020, causing significant revenue declines.
• Cities largely recovered these losses in 2021 due to infusion of funds from the American Rescue Plan Act (ARPA).
• Collaborative federal-local government spending helped address pandemic fallout and fund recovery initiatives.
• Despite stabilization, cities face ongoing challenges, particularly with infrastructure funding.

Key Findings

• Fiscal Year Variations: City fiscal years start at different times (Jan, Jul, Oct most common), affecting the fiscal impact timing of the pandemic.
• Revenue Changes: FY 2020 saw significant declines (-5.94% on average) compared to FY 2019. Many cities saw stabilization or recovery in FY 2021.
  • Impact: Notable downturns in sales and income taxes due to economic shutdowns.
  • Recovery: Faster rebounds driven by federal aid (ARPA, CARES Act).
  • Lags: Recovery measures helped, though revenue lags typical due to collection cycles.
• Infrastructure Needs: Identified as the primary challenge for FY 2021 budgeting by a majority of finance officers.
• ARPA Utilization: Most cities prioritize using ARPA funds for revenue replacement and addressing negative economic impacts, though some focus on infrastructure and specific community supports.

Analysis

• Federal intervention (CARES, ARPA) was crucial in mitigating the financial impact during the pandemic.
• Proactive fiscal policy and state flexibility during the crisis proved helpful.
• The combination of federal aid, a robust real estate market, and legal changes like the Wayfair decision helped stabilize finances compared to pre-pandemic projections.

Conclusion

The FY2021 budgets reflect a mixed landscape: immediate stabilization achieved, but underlying fiscal stress remains, particularly concerning infrastructure investment. The collaboration and financial support provided during the pandemic were effective in preventing worse outcomes and setting a foundation for recovery.