The Nation : Cities Foresee Tax Hikes

The loss of federal revenue-sharing money this year will force cities to raise property tax rates by an average 25% if they are to maintain services, a survey of city leaders by the National League of Cities said. Officials in 58% of the 655 cities surveyed said they anticipate a combination of tax increases and spending cutbacks because of the scheduled end of revenue sharing this fall. The league released its survey as 3,500 mayors and council members from across the country were opening their three-day congressional conference in Washington. Their highest priority has been reviving the $4.6-billion revenue-sharing program.