- Municipalities will see substantially lower revenues from various sources such as local service taxes, liquid fuels funds, and realty transfer taxes due to economic downturn and high gas prices in 2008. Earned income tax, business taxes, and interest earnings will also be lower.
- Unemployment rates have risen significantly while payrolls have declined sharply resulting in lower personal income tax revenues and increased costs to unemployment funds.
- Revenues are expected to remain flat or decline further while costs such as insurance, materials, and wages increase, resulting in budget deficits, staff cuts, borrowing, and reduced services for many municipalities.
