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Although national attention has largely focused on state budget battles like Wisconsin's union showdown and Minnesota's state shutdown, the real spending struggle is actually taking place at the local level.
As federal stimulus money runs dry, states are scaling back on municipal aid and revenue sharing. The cuts are adding immense pressure to strained local governments, many of which are already struggling under huge debt burdens. After years of declining tax revenues, cities and towns across the country are now running out of ways to deal with their ballooning budget deficits.
Public employee costs account for ... between 70% and 80% of local government funds.
New York
Los Angeles
Chicago
San Francisco
Pittsburgh
North Las Vegas
San Jose
Providence, RI
New Haven, CT
Newark, NJ
Stockton, CA
Colorado Springs
Costa Mesa, CA
Central Falls, RI
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