NLC: city officials disappointed with counterparts at federal, state levels.

• Position: National League of Cities

A recent report by the National League of Cities found that city officials overwhelmingly disapprove of the way their elected counterparts at the federal and state levels handle budget and tax issues. A large majority of city officials also say that the federal deficit, in particular, poses a problem for cities. The findings, which are part of an NLC report entitled Local Budget and Tax Policy in the U.S.: Perceptions of City Officials, are based on a survey of city government officials.

"We are the keepers of hometown America--our roads and bridges, our water and sewer lines, our business, our residential communities--and we must alert our federal and state compatriots that what they do in Washington or in our state capitols in the coming months and years will truly affect the quality of life for all of us," said James Hunt, NLC 1st Vice President and a member of the Clarksburg, West Virginia, City Council.

In terms of potential reforms, city leaders also point to a number of federal and state actions. The top three options favored by city officials are a return to some form of federal revenue sharing (79 percent), state authorization of additional local tax authority (69 percent), and taxing goods sold over the Internet (66 percent).

As local governments nationwide continue to confront significant fiscal challenges, one in two city officials (52 percent) say that the system of public finance is in need of some minor changes, while nearly equal numbers say that either major changes are necessary (22 percent) or that no changes are needed (16 percent).

Revenue and spending...