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The biggest challenge for city officials around the country is dealing with state and federal budget cuts and mandates, according to survey results released Thursday at the opening of the National League of Cities conference in Denver.

Budget concerns have grown amid the possibility that the Bush administration is considering changes to the federal Community Development Block Grant Program, which provides funds for municipal projects.

The league unveiled pieces of its 2004 survey at the beginning of its three-day conference.

The survey of 414 city officials revealed that 88 percent considered cuts in funding from state and federal sources to be “somewhat” of a challenge or a “large” challenge. The same percentage designated unfunded spending mandates from federal or state governments to be of similar concern.

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