Local governments go to the barbershop – Tight budgets mean many local services are getting a haircut, and some more than others

Source: Ronald A. Wirtz, Federal Reserve Bank of Minneapolis, Fedgazette, January 2013

The Quick Take: The recession has induced tighter budgets for many local governments. While payrolls have often been cut, governments have also employed a variety of strategies—cooperative agreements, compensation freezes, deferred maintenance and productivity improvements—to make budget ends meet. While most budget areas have been affected in some fashion, cutbacks on streets and other infrastructure could have consequences down the road. …