Key facts
- City finance vacancies have decreased due to economic uncertainty and budget concerns.
- Many finance officers anticipate rising costs from tariffs and inflation.
- Cities expect revenue streams, including income tax, to tighten.
- Property tax revenues continue to show some growth.
- Municipal bond tax-exempt status remains intact.
- Cities' fiscal year 2025 spending grew by less than 1 percent.
City finance jobs are experiencing a downturn as employers adopt a cautious approach amid economic uncertainty and anticipation of the Autumn Budget. A summer 2025 survey by the National League of Cities revealed that many finance officers are concerned about rising costs, with tariffs and inflation expected to impact procurement and employee wages.
Revenue streams for cities are tightening. Income tax revenue is projected to decline, and the end of American Rescue Plan Act (ARPA) money by late 2026 is a significant factor. While sales tax growth is flattening, property tax revenues continue to show some growth, providing a partial offset. Cities' fiscal year 2025 spending has grown by less than 1 percent, a stark contrast to the nearly 8 percent growth in FY2024, indicating a more conservative fiscal stance.
Confidence among finance officers about meeting future financial needs has also waned. While optimism was higher in FY2024 compared to FY2023, only just over half felt confident about FY2025, and fewer than half anticipate being able to meet budget needs in FY2026. A significant concern was the potential elimination of the tax-exempt status for municipal bonds, which did not materialize, preserving a key financing tool for infrastructure projects.