A new report by Cardiff University's Wales Governance Centre (WGC) suggests taxpayers are paying more money for fewer services.
Researchers suggest the equivalent of £232 less is being spent on each person in Wales.
Despite raising council tax to meet the shortfall, the report suggests local authorities have still been left with £577m less in 2017-8, compared to 2009-10.
The Wales Governance Centre said "taxpayers are effectively paying more money for fewer services".
The report lists a number of services impacted by funding cuts since 2009:
During the same period funding for libraries, culture, sport and recreation has been cut by 36.3%. The budget for transport has suffered a 28.5% reduction.
Responding to the report, a spokesperson for the Welsh Local Government Association pointed to the policy of austerity that has impacted on funding.