Three Decades After Cleveland Defaulted on Its Debts, Cities Face Recession Budget Woes - US News and World Report: "Historically, cities rarely default on loans. Rarer still are city bankruptcies, despite Vallejo, Calif.'s much-publicized May filing under Chapter 9, the section of the bankruptcy code that applies to municipalities. And such moves usually stem not only from a financial downturn but from each city's particular situation—from whether the budget has balanced in the past to how willing leaders are to make the politically unpalatable move of raising taxes.
As today's economic crisis deepens, however, so will its impact on cities. In fact, experts say municipalities will feel the recession's full effect slightly after businesses and industries. Even if they do not declare bankruptcy outright, more cities might default on their loans in the coming months.
But before any of that, experts say, expect budget cuts. Lots of them."
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The consensus seems to be that we are about to see major service cuts by local governments across the country. How will this effect HOAs and condos?
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