Major Trends in Local Finance
Municipal revenues and expenditures increased by 5.7 percent ($1.8 billion) from fiscal year (FY) 2021 to FY 2022; the highest rate of growth since FY 2007. The strong rate of growth in FY 2022 is partially the residue of the pandemic. In FY 2021, municipal resources grew under two percent (1.7) for the first time since the Great Recession. In FY 2022, municipal finances rebounded. Prior to the pandemic, municipal finances experienced three straight years of growth over four percent, the first time that had occurred since the mid 2000’s.
The data included in this publication do not include several federal and state one-time resources provided directly to municipalities during the pandemic. Those resources are not captured in Division of Local Services municipal financial data and they could obscure underlying trends in municipal revenue and spending. Still, those resources have helped and continue to help municipalities address a range of costs. As with much public finance analysis during the pandemic, the analysis that follows provides only part of the picture and so any conclusions must await further data.