The palm trees in many Phoenix neighborhoods will be left shaggy this year. The city can afford to prune the trees only on major streets.

There's also no money for children's tee ball, or soccer, baseball or flag football. No money for a free shuttle service for the elderly. No money for most inner-city "fight back" programs that tackle blight.

Around the country, the mortgage crisis and the slumping economy are causing tax revenue and investment returns to plummet, forcing cities big and small to cut expenses.