Tuesday, December 30, 2025

MUNICIPAL FINANCE CHALLENGES

AND POTENTIAL SOLUTIONS

Lucy Dadayan, a principal research associate with the Urban-Brookings Tax Policy Center at the Urban Institute, offers these standard belt-tightening measures:

  • Hiring freezes/not filling vacant positions, suspending or reducing pay increases, furloughs and layoffs.

  • Delaying or canceling infrastructure upgrades.

  • Across-the-board or targeted spending cuts in both non-essential and sometimes critical services.

  • Selling surplus assets or utilizing government-owned real estate for revenue generation.

  • Redirecting already-obligated funds to ensure that legally committed projects can proceed.

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