Recession's Effects Intensify in Cities

/PRNewswire/ -- Cities' finances continue to weaken under the strain of the recession, resulting in cities being less able to meet their fiscal needs in 2011 and beyond. According to the National League of Cities' annual report on cities' fiscal conditions, financial officers report the largest spending cuts and loss of revenue in the 25-year history of the survey.

In the research brief, "City Fiscal Conditions in 2010" (http://nlc.staging.10floor.com/ASSETS/AE26793318A645C795C9CD11DAB3B39B/RB_CityFiscalConditions2010.pdf), 87% of city finance officers report their cities are worse off financially than in 2009. City revenues - as generated in property, sales, and income taxes - will decline -3.2% in inflation-adjusted dollars according to finance officers. To compensate, city officials are cutting back spending, with expenditures declining by -2.3%. These are the largest cutbacks in spending in the history of the survey and the fourth year in a row that revenue declined.

Financial pressures are forcing cities to layoff workers (79%), delay or cancel capital infrastructure projects (69%), and modify health benefits (34%). There were also significant increases in the number of officers reporting across-the-board services cuts (25%) and public safety cuts (25%). Public safety is usually reduced only as a last resort option.

"This historic recession has forced city officials to make difficult decisions that impact the social and economic fabric of their communities," said Ronald O. Loveridge, mayor of Riverside, CA and president of NLC. He continued, "This recession is making city officials fundamentally rethink and repurpose the provision of services in their communities. Some are innovating and finding creative solutions but, regrettably, without the necessary resources, cities will continue to have a difficult time assisting their residents through these trying economic times."

The ongoing weakness in the housing market, along with poor retail sales, has reduced the available revenue by significant margins. The responses from the finance officers clearly illustrate that the effects of the economic crash are intensifying in cities. Because most tax revenue is collected at specific points during the year, and since it takes time for housing assessments to catch up to current values, cities will still be feeling the full effect of the downturn in 2011. The national economy's slow recovery to date also means the recession's effects will potentially linger in cities for several more years.

"These stark numbers continue the trend we've been seeing for the past several years: lower revenue and reduced services at a time when there is an increased demand for services," said co-author Christopher Hoene, director of the Center for Research and Innovation for the National League of Cities. He continued, "Unfortunately, because of the loss in revenue, cities will face even more difficult circumstances in the months, if not years, to come."

Cities have been forced to confront low consumer spending, unemployment, and cuts in state aid that have severely affected the types of services and the manner in which they are offered by cities. In response, many cities are revisiting the range of services provided and looking for new service-delivery models in order to balance budgets and minimize the impacts of cuts on residents.

"While certain segments of the economy may be under recovery, cities as a whole are not yet experiencing growth," said co-author Michael A. Pagano, dean of the College of Urban Planning and Public Affairs at the University of Illinois at Chicago. He continued, "As a consequence, cities are facing very serious financial hurdles right now in providing basic public services."

NLC conducts the survey each year in partnership with the University of Illinois at Chicago's College of Urban Planning and Public Affairs, a nationally recognized innovator in education, research, and engagement in support of the nation's cities and metropolitan areas. Michael A. Pagano, Dean of the College, has helped conduct the survey and author the report since 1991.

The National League of Cities is the nation's oldest and largest organization devoted to strengthening and promoting cities as centers of opportunity, leadership and governance. NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans.

Through its Center for Research and Innovation, NLC develops, conducts and reports research on issues affecting cities and towns. The Center assists cities and their leaders to implement innovative practices by providing qualified information and technical assistance.

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Career Expert Offers Eight Strategies to Help Layoff Survivors Rebound

/PRNewswire/ -- Many professionals have felt the shock of layoffs during these difficult times -- including those who kept their jobs. According to administrative staffing firm OfficeTeam, employees who survive corporate downsizings often must manage heavier workloads and stay motivated while worrying that their jobs could be eliminated next.

"It's natural for people to have mixed feelings about keeping their jobs when coworkers have been let go," said OfficeTeam executive director Robert Hosking. "Layoff survivors often experience guilt about being the ones who stay while also working in an environment marked by uncertainty."

According to Hosking, professionals who are spared from layoffs should not pretend it's business as usual. "This is a time to work closely with your manager to ensure your workload reflects company priorities," he said. "Also, try to stay positive. This can be challenging, as losing good people inevitably affects morale, but the more you can do to lift the collective spirit, the better off you will be."

OfficeTeam offers these tips for rebounding after company layoffs:

1. Make yourself indispensable. Focus your efforts on projects that help
boost your firm's bottom line. Take courses to learn skills that allow
you to contribute in new ways.
2. Build visibility. In uncertain times, it's important to be noticed for
the right reasons. Volunteer for projects that no one wants to tackle
or that fall outside your job description. Also provide periodic
reports updating your supervisor on your achievements.
3. Adapt to change. Managers appreciate employees who can roll with the
punches and maintain productivity when faced with adversity.
Demonstrate your ability to stay positive, motivated and focused on
doing good work.
4. Conduct an audit. Now is the time to be nimble. Evaluate current
processes and offer suggestions for cutting costs or saving your
company time or resources.
5. Avoid the rumor mill. While increased water cooler chatter is
inevitable after layoffs, avoid contributing to the gossip. Also, don't
believe everything you hear. If you have questions about your company's
direction, ask your manager but understand he or she may not have all
the answers.
6. Be generous with praise. After downsizing, employees may begin to doubt
their abilities and question their own future with the company. If you
are a manager, you may not be in a position to make promises of job
security, but you can give direct reports positive feedback on their
performance in challenging times.
7. Reach out. Offer assistance to those who have experienced a job loss by
introducing them to your professional network and helping them with
their job search.
8. Look out for yourself. Layoff survivors often experience increased
workloads, which can lead to burnout. Talk to your manager about
setting priorities, delegating projects or bringing in temporary
professionals.



Hosking noted that workers need to be aware of the realities of their organizations. "Those who think their job may be in jeopardy should focus on reactivating their professional networks, taking stock of their skills and accomplishments, and putting together a strong resume," he said.

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Unemployment Rises, Yet Profiles International Reports Hiring in Select Sectors

/PRNewswire/ -- Profiles International, the world leader in employment evaluation and human resource management assessment tools, has identified growing job sectors despite the latest unemployment figures.

"The silver lining behind the ongoing employment clouds is that select sectors of the economy remain vibrant, with numerous unfilled positions," said Jim Sirbasku, co-founder and CEO of Profiles International. "We have clients in healthcare, transportation / logistics and financial services that continue to add to their payrolls."

According to the Bureau of Labor Statistics (BLS) of the U.S. Department of Labor, nonfarm payroll employment fell in January 2009 by 598,000 and the unemployment rate rose from 7.2 to 7.6 percent. Job loss was distributed across most major industry sectors.

However, Profiles International continues to experience demand for personnel evaluation and assessment from clients that are looking to hire. For example, credit unions are expanding as traditional financial institutions continue to shrink their workforces. Demand for skilled healthcare professionals at all levels continues to remain strong, while segments of the transportation industry have rebounded due to the drop in fuel prices, and are now expanding their workforces.

While the overall U.S. economy still has not begun its recovery, Sirbasku said preemptive layoffs will actually hurt many companies in the long run.

"A strong staff and viable workforce is the greatest asset a company can have because it's the biggest investment a company will ever make," he said. "Releasing talented workers in anticipation of an uncertain economic future is often a costly mistake that can mortgage a company's future. It is far better that companies put off capital investments, which can always be made when the economic conditions strengthen."

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