by Calculated Risk on 1/13/2010 11:17:00 AM

One of the ways California made it through 2009 was by cutting aid to cities, and that has led to severe cutbacks in local spending. I've been seeing more and more article like these ...

Riverside County: Massive county layoffs likely, chief exec says

Anaheim: City cuts 11 jobs, slashes tourism funds

And this will probably be a problem nationwide, from Reuters: Shortfalls for US cities could reach $56 bln-report

U.S. cities will face a collective budget shortfall of at least $56 billion over the next two years, with the current recession not seen hitting bottom until 2011, according to a report on Wednesday.
...
States are also threatening to cut another lifeline for cities -- direct aid transfers. As they attempt to reconcile their own battered budgets, states are saying they can send less money to cities. California, for one, has already taken back aid it had granted.