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.

BBC: Local government finance debate

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

WSJ: Long Island Is an Unlikely Jobs Engine

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.

WHITEHOUSE: Press Briefing