New census figures make it clear — 2009 was not a good year for state and local governments.
Municipal governments saw their total revenues plummet by more than 20% in 2009, down 587.5 billion from 2008’s take of $2.1 trillion, according to the Census Bureau’s 2009 Annual Survey of State and Local Government Finances.
Much of the drop came from dwindling tax revenues, except for property taxes, which actually saw a slight uptick from 2008, according to the survey.
Unemployment compensation increased by a whopping 86% from $35.6 billion in 2008 to $66.2 billion in 2009.
These figures are likely not a revelation to anyone following the plight of municipal finances, but the survey did reveal some interesting results.
- Even as state and local governments slashed budgets left and right in 2009, spending sill increased on the whole by 4.6%, totaling nearly $3 trillion.
- Revenues from the federal government also increased by 12.3%, although that can likely be explained by the massive influx of federal stimulus cash.
- As revenues fell, local governments took on an additional $131 billion in debt obligations.
To learn more from the report, you can view it here.