Among the forms of state support of small monofunctional depressed cities, it is necessary to distinguish investment activity, providing transfer to their budgets, tax loans, premiums for creating new jobs, targeted loans to the population for housing, promoting the development of small business and entrepreneurship. As for urban finances, now the minimum necessary budget expenditures are counted according to the unified or group minimum social and financial standards. Due to the uneven development of the regions and individual cities, it would be advisable to use the financial alignment mechanism to redistribute financial resources between regions through state budget. The introduction of this mechanism should be preceded by a number of measures, such as the development and legislative consolidation of unified state social standards, the consolidation of all levels of stable standards of national taxes, fees and other mandatory payments for budgets. The solution to the problem of financial leveling requires the accounting of objective economic processes taking place in the state during administrative reform, decentralization of public administration, the demarcation of property rights, transfer of powers and financial resources from the center and cities. This means the need to improve the system of relations of the central and local executive bodies and self -government, which in turn makes it necessary to improve the system of formation and fulfilling local budgets. It is advisable to carry out this on the following principles: establishing the minimum level of expenditure of the budgets of small cities at least a guaranteed minimum level of social needs of the population, ensuring guarantees of protecting the rights of cities for timely and complete receipt of subsidies, preventing artificial subsidizing local budgets, provided that the volume of such subsidies can be blocked by regulated receipts collected in the corresponding territory. In order to provide financial support to depressed regions, you can create a special support fund for such regions, which would be provided in the form of transfers.