A decade of decline: a longitudinal look at big city and big county strategies to cope with declining revenues

Abstract

Many local governments have now endured a decade of fiscal decline due to periodic reductions in external funding (federal and state and slowdowns in the rate of growth of the state and local government sector. This research examines the extent to which six large jurisdictions (three cities, three counties) under fiscal duress avoided political conflict and prevented further fragmentation of their authority between 1978 and 1987. The results showed that local officials generally chose retrenchment strategies (revenue, expenditure, and borrowing) with the least anticipated political opposition; but where hard choices had to be made (personnel reductions), they were made without hesitation. The timing of politically unpopular choices to coincide with downward trends in the private sector reduced the level of political fallout, even in heavily unionized, socioeconomically diverse communities. The results also showed that local officials strongly endorsed, rather than opposed, strategies that further fragment...