Source: Paul Abowd, Labor Notes, No. 358, January 2009
Last summer’s meeting of the National Conference of Mayors foresaw grim days for American cities — and that was before finance markets folded up in the fall. Now urban governments confront budget deficits that stem from falling tax revenues and the ongoing credit crunch.
More than a quarter of American cities hemorrhaged jobs in 2008. Mayors now propose to add to the jobless by firing yet more city workers. Wall Street’s collapse has opened a $4 billion hole in New York’s $60 billion balance sheet over the next two years–and support from state and federal coffers is less than forthcoming.