Wednesday, January 14, 2026

MUNICIPAL FINANCE CHALLENGES

AND POTENTIAL SOLUTIONS


Michael Pagano, dean emeritus, University of Illinois at Chicago College of Urban Planning and Public Affairs and former Brookings Metro non-resident fellow, said the bigger impact is what Covid did with remote work and hybrid work. 

He said the lack of downtown workers, which also impacts downtown retail and restaurants, has impacted the commercial tax base.

Some cities have rebounded and repurposed, while others are still struggling.

“There is not any such thing as an average city, so there is no such thing as a magic bullet that works in every city,” he said.

“Another issue is that states ban city access to certain resources — a downtown may come roaring back, but if the city doesn’t have authority to levy taxes on that growth, it is not the boost it could be.

 

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