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Economics

US Cities Are Preparing for an Impending Recession, Survey Shows

  • Governments are grappling wtih supply-chain issues, inflation
  • Cities anticipate a decline in their sales and income tax
Traffic makes its way through Manhattan in New York. 

Traffic makes its way through Manhattan in New York. 

Photographer: Ed Jones/AFP/Getty Images

Optimism among US city finance officers is waning as they expect to contend with a drop in tax revenue and a looming recession, according to a new survey by the National League of Cities.

Nearly a third of the city officials from 395 cities surveyed for the 2022 City Fiscal Conditions report said they are less able to meet their financial needs in fiscal year 2023 as the economy slows. Just 11% felt that way about fiscal year 2022, as federal funds set aside for pandemic relief helped buoy their finances.