The Age of Austerity has arrived with a vengeance in U.S. cities.
City budgets shrank 1.9% in 2011 after 4.4% declines in 2010, according to the annual report from the National League of Cities (via Morning Money).
City revenues declined 2.3% this year for the fifth straight year of declines.
While tax revenue and state and federal aid decline, costs are increasing including pensions and health care. Cities have responded with layoffs, hiring freezes, pay cuts and service cuts.
If the economy doesn't get better soon, Meredith Whitney may be looking good.
Read more at Business Insider.