In a recent government meeting, key discussions centered around the challenges and opportunities facing Georgia's cities, particularly in rural areas. Larry Hansen, CEO of the Georgia Municipal Association, presented a comprehensive overview of the economic landscape, emphasizing the critical role cities play in the state's economy despite comprising only 9% of Georgia's land area. Notably, cities house 69% of jobs and 66% of commercial properties, underscoring their significance as economic engines.
Hansen highlighted the financial stability of cities, attributing it to state support through grants for housing, parks, and infrastructure, as well as federal funding from the American Rescue Plan Act (ARPA). This unprecedented funding allowed cities to stabilize their finances post-COVID, enabling investments in essential services and infrastructure.
However, Hansen pointed out long-term challenges, particularly in rural areas, including population decline, job creation difficulties, and limited revenue options. He noted that many young people are migrating to metropolitan areas, exacerbating workforce shortages in essential municipal roles such as police and public works. The meeting revealed that cities are struggling to recruit and retain workers, with significant turnover in key positions like city clerks and managers.
Infrastructure needs were a major focus, with a staggering $18 billion identified for capital improvements over the next few years, primarily in transportation and water/sewer systems. Hansen urged continued support from the legislature, particularly for the Local Maintenance and Improvement Grant (LMIG) program, which has seen funding increases but faces challenges due to rising costs.
The discussion also touched on economic development strategies, emphasizing the importance of revitalizing downtown areas as community hubs. Hansen reported nearly $1 billion in public and private investment in Georgia's downtowns last year, highlighting successful projects that have transformed vacant buildings into thriving businesses.
In conclusion, the meeting underscored the need for ongoing collaboration between state and local governments to address the pressing challenges facing Georgia's cities, particularly in rural areas, while leveraging their economic potential for future growth.