Rising salaries, a persistent talent shortage and changing expectations among workers are making it difficult for local governments to hire the tech workers they need, according to researchers and city officials…

While some local governments can pay tech workers compensation that’s competitive with the private sector, most cannot, said Farhad Omeyr, program director of research and data at the National League of Cities’ Center for City Solutions.

Increasing home prices — along with the associated property tax revenue — and an influx of federal funding stabilized city budgets during the depths of the pandemic. But higher inflation, a potential recession and a looming decline in federal funding could threaten the financial footing of many local governments, he said. As a result, cities are hesitant to raise wages significantly, Omeyr said.