How cities try to manage funding shortfalls

San Jose is not alone in its efforts to cut back operations to meet declining revenue, although the city bravely rejected calls to defund its police department. Heather Gillerts at the Wall Street Journal explains how many cities approach the problem.

The shortfalls are hitting cities ranging from struggling towns to thriving metropolises. Nearly 90% of cities expect revenue shortfalls, according to a survey by two advocacy groups, the National League of Cities and the U.S. Conference of Mayors, which polled 2,463 cities and towns that are home to 93 million people.

Cities have long funded core services by capitalizing on their role as gathering places, charging to park in their downtowns, enter through their ports and eat in their restaurants.They are now having to keep running without any clear sign of when those revenues will return to normal levels.

With no good options, city officials are turning to measures that could jeopardize their future, s uch as borrowing money for operations or cutting police and fire protection.

More than half of U.S. Cities expect to cut public-safety spending and more than a quarter plan to lay off workers, according to an April survey by the two advocacy groups.

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