WASHINGTON — Revenues at municipalities may increase slightly in 2013 and additional municipal bankruptcies will be uncommon as state and local governments continue a slow economic recovery, speakers at a conference said here Tuesday.

But even if municipal health mends, lawsuits challenging the legality of recent pension cuts and other drastic measures taken by financially-strapped governments will continue through courts for years, and may eventually be decided by nation's highest court, said Frank Shafroth, director of George Mason University's State and Local Government Leadership Center who spoke on a panel at Governing's Outlook in the States & Localities Conference.

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