Under this administration, the share of the budget that is allocated to local government is higher in 2012-13 than it was when we came to office, despite the unprecedented pressure that the budget has been under.

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There also are challenges such as looming local government budget deficits and a lack of apartment buildings to house recent college grads.

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For example, one of the weak spots in our economy has been in the area of state and local government, where budget constraints have forced decisions upon officials in states and localities to lay off teachers, to lay off firefighters and police officers.

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He also wants decentralisation: local government currently spends only 4% of the budget.

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This has caused some grumbling within local government, which is seeing the rest of its budget slashed, while others argue it is not enough to make a difference.

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State and local government outlays and employment, normally rocks of stability, are declining due to budget deficits and vastly under-funded pension plans.

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The Scottish government will not know its budget for next year - or how much it may be able to offer local authorities - until the results of the UK government's comprehensive spending review in October.

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