One evident problem is fiscal: Cities typically have serious difficulties in paying for basic services such as policing, public education, trash removal, street maintenance, and snow removal (at least in cold climates), and in providing certain services for their residents who are poor or disabled or who have other conditions. The fiscal difficulties that cities routinely face became even more serious with the onset of the nation’s deep recession in late 2007, as the termfiscal crisis was used again and again to describe the harsh financial realities that cities continued to face even after the recession officially ended in mid-2009 (McNichol, 2009). [1]
In early 2012, almost three years after the United States officially emerged from the recession, this fiscal crisis persisted. The mayor of Syracuse, New York, announced that her city faced a budget deficit of $16 million and called its fiscal problems “staggering” (Knauss, 2012). [2] Mayors in Rhode Island told their governor that their cities need fiscal aid from the state to prevent them from having to declare bankruptcy. One of the mayors said, “We all have the same issues. Something has to be done this year. We cannot have a study commission. We cannot say ‘we’ll wait until 2013 or 2014.’ This is do or die” (Klepper, 2012).[3] Detroit, Michigan, was in danger of running out of money altogether and being taken over by its state government. The member of the US House of Representatives who represents Detroit said he was seeking aid from the federal government: “Bottom line, I’m asking for federal aid to avoid massive layoffs, especially for our public safety workers. That’s what we actually need to attract businesses here who create jobs. We need safe streets and we need good schools” (Oosting, 2012). [4]
In response to financial problems in these and other cities across the nation, the US Conference of Mayors urged Congress in early 2012 to provide several kinds of aid to cities, including low-interest loans for local rail and road projects and funding for housing and job training for low-income residents (United States Conference of Mayors, 2012). [5]
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