Survey: Local governments cautiously optimistic about economic growth
Local government officials are cautiously optimistic about the future of economic growth, according to a new survey released Monday by the Washington-based International City/County Management Association (ICMA) and the National League of Cities (NLC). The Economic Development 2009 Survey found that 74 percent of the respondents believe their local government’s economic base would see slow to moderate growth over the next five years.
Fifty-three percent of the survey respondents believed they would achieve “slow growth” (less than 10 percent) in their local economies over the next five years, while 21 percent believed they would achieve “moderate growth” (10-25 percent). Nearly 18 percent said that their jurisdiction’s growth would remain “stable” (no growth or decline), and only 6 percent forecasted a decline. When asked what barriers to economic development their jurisdiction had encountered, the three most common responses were “cost of land” (53 percent), “availability of land” (52 percent), and “lack of capital/funding” (50 percent).
The survey also found that in approximately two-thirds of the responding localities, the local government was the main engine for economic development, while in 20 percent of responding communities, a nonprofit development corporation had lead responsibility. Also, 58 percent of respondents said the local government budget allocation process was not linked to economic development priorities. Nearly 86 percent of local government respondents reported that local revenues/general funds are used to fund economic development activities.
Other topics covered in the survey include overviews on community tax burdens, and business retention and recruitment activities. The survey, which was mailed in October 2009, features the responses of 852 local governments, including municipalities of 10,000 or greater and counties of 50,000 or greater. Download the Economic Development 2009 Survey.
