The Economy and Cities: What Local Leaders are Seeing.
A National League of Cities and United States Conference of Mayors Survey
All cities fighting to protect their residents from COVID-19 on the frontlines are doing so at great
cost, but not all are receiving the direct financial support they need from the federal
government. To that end, The United States Conference of Mayors and the National League of
Cities received the attached snapshot of the impact of the COVID-19 pandemic on cities and
towns from more than 2,400 local officials.
Municipal budgets are hanging on by a thread—88 percent of local leaders anticipate the
pandemic will lead to painful reductions in revenue this year. As a result of these losses, local
leaders will be forced to cut critical public services and reduce their workforces: nearly a third
anticipate furloughing employees; a quarter anticipate lay-offs; more than half anticipate
funding cuts for police and more than one-third expect cuts for firefighters and EMTs. This
situation is particularly acute for cities in the 50,000 to 500,000 population range. Currently only
cities with populations above 500,000 are eligible for direct funding through the Coronavirus
Relief Fund. The National League of Cities (NLC) and the United States Conference of Mayors
(USCM) are calling on Congress to ensure every city, town and village impacted by this
pandemic—regardless of size—has direct access to emergency funding.
Findings/Results
Nearly all cities report that they anticipate a revenue shortfall this year.
Yes

Row Labels

<50,000

Count Percentage

1911

87%

200-499,999

57

100%

500,000+

35

100%

50-199,999

177

98%

Grand Total

2180

88%

Nearly all cities report that initial budget shortfalls are the result of unanticipated revenue
declines (96%) (combine "both" with "unanticipated revenue decline").

 Primary Factor for Shortfall

Count Percentage

Both

930

43%

Other

49

2%

Unanticipated expenditure increases

32

1%

Unanticipated revenue decline

1157

53%

Grand Total

2168

100%

Short Term Impact
Property Taxes

526 (35%)

Sales Taxes

1,067 (61%)

Income Taxes

220 (18%)

State Intergovernmental Aid 503 (38%)
Utility Fees

971 (63%)

Permitting Fees

1,107 (69%)

Other Service Fees

802 (68%)

As a result, cities are preparing to cut public services and reduce employment.

Row Labels

Cut public services

Count Percentage

<50,000

945

50%

200-499,999

40

70%

500,000+

26

76%

2

 50-199,999

111

63%

Grand Total

1122

52%

Row Labels

Furlough employees

Count

<50,000

Percentage

Layoff employees

Count Percentage

492

26%

486

26%

200-499,999

31

54%

22

39%

500,000+

20

59%

16

47%

50-199,999

97

55%

64

36%

Grand Total

640

30%

588

27%

4. Greater than half of all cities report that cuts will impact police and public safety.

Row Labels

Police

Count Percentage

<50,000

200-499,999

946

52%

27

50%

3

 500,000+

19

59%

50-199,999

88

51%

1080

52%

Grand Total

A total of 2,463 cities, towns and villages provided information.to NLC and USCM. 2,191 of the
cities are under 50,000 population; 181 are between 50,000 and 199,999; 56 are between
200,000 and 499,999; and 35 have a population of 500,000 and above -- a group that includes 19
of the nation’s 20 largest cities. These cities represent 57% of the nation’s municipal finance
sector and 10% of its municipal governments. Their population totals 93,015,252, which is 28%
of the total U.S. population.

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