City, State Funding Projected to Increase in 2013

According to a Jan. 10 article in Bloomberg Businessweek, “U.S. Cities and States Start Spending Again,” state and local governments anticipate a growth in revenues in 2013 and as a result are expected to expand hiring and construction. Among the highlights of the article:

• State revenues are projected to increase 3.9% during the 2012-2013 budget year. (National Governors Association and National Association of State Budget Officers)
• Cities and counties, which depend on property taxes for much of their revenue, saw home prices rise 4.3% in October from a year earlier, the largest 12-month advance since May 2010. (S&P/Case-Shiller 20-City Home Price Index)
• Improved finances have helped allay concerns among investors about defaults in the tax-exempt municipal bond market. The $3.7 trillion muni market returned 7.3% in 2012, compared with 2.2% for Treasuries. (Bank of America Merrill Lynch)
• By the fourth quarter of 2013, state and local agencies will employ 220,000 people more than they did in the same period in 2012. (Moody’s Analytics)
• Spending on new parks, schools, roads and similar projects will rise 1.8%. (Macroeconomic Advisers)
• State and local construction rose 2.3% to a seasonally adjusted annual rate of $252 billion in November. (U.S. Department of Commerce)

Information via Water and Wastewater Equipment Manufacturers Association (WWEMA)

Source: WWEMA, BloombergBusinessweek