This passage is concerned with ______. A. the revival of some North American and European CBDs B. the problems facing the development of U.S. downtown areas C. the moving pattern of the U.S. middle class D. the possible solutions to the fiscal problems
A city has two choices to close the gap between the cost of services and the amount of available taxes. One alternative is to raise taxes, a move that could drive remaining wealthier people and industries from the city. The other alternative is to reduce services by closing libraries, eliminating some public-transit routes, collecting trash less frequently, and delaying replacement of outdated school equipment. Aside from the hardship imposed on those laid off from work, cutbacks in public services could also encourage middle-class residents and industries to move from the city.
To avoid this dilemma, cities have increasingly sought funds from the state and federal governments. The federal government increased its share of contribution to city budgets from I percent in the 1950s to 25 percent in the early 1980s. Since the early 1980s, though, the federal government has substantially reduced its contributions to local governments. State governments and private corporations have increased financial assistance to cities to offset partially the loss of federal funds. The high level of outside financial support has obscured the intensity of the fiscal crisis faced by cities as a result of shifting patterns of land use.