Analysis Roundup – November 9, 2012

Here is the latest information of interests to budget, financial and management analyst  for NC local government:

NC League of Municipalities
2012 Annual Budget & Tax Rate Survey Results Released

Wednesday, NCLM Research Director Karl Knapp released the League’s latest update to their annual survey on budget and tax rate performance. More than 450 municipalities responded to their late-summer survey.

Highlights:

  • 67% of respondents reported that revenues were better able to support increased spending levels, up from 53% last year and relatively-close to pre-recession confidence levels.
  • In order to balance budgets, more municipalities than last year chose to raise tax rates and increase or add fees, while much fewer than last year chose to cut specific program expenditures of eliminate employee pay increases.
  • General government services like finance, human resources and administration remain the hardest hit by budget limitations and necessary spending cuts.
  • Nearly 55% of those responding to a question about service reduction reported that sanitation services had been scaled back.
  • Approximately 45% of those reporting on job eliminations indicated they eliminated positions in Police (highest), general government was second (39%).
  • Fewer municipalities eliminated positions, reduced employee benefits or cut capital spending compared to last year.
Wells Fargo Economics
Wells Fargo released their Monthly Economic Outlook report for November this morning. They predict 3rd Quarter GDP will be around 1.4% annualized rate in the US, with global growth for the year coming in a little over 3%. Domestically, they do not expect the slight improvement in trends seen during the 3rd quarter to remain through the end of the year. This week’s announcements of considerable corporate layoffs following Tuesday’s election point to some weaknesses, and uncertainty of the pending “fiscal cliff” events will create additional uncertainty and negatively-impact investment. More than likely, any domestic GDP growth through the end of the year will be achieved from consumer spending, including an expected increase in spending during the holiday season.
ABFM/ASPA
Check out what Kenneth Hunter (Rocky Mount) presented early this week.

Links of Interest

Wells Fargo – The Fiscal Cliff Debate in a Post-Election World

Wells Fargo – Global Chartbook (October 2012)

Richmond Fed – Fifth District Economic Indicators

Richmond Fed – Are Depression Era Employment Swings Overrated?

RTP Master Plan/Road Show

Grand Rapids, MI – Effort to Change Comptroller from Elected to Appointed Fails

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