Decree or democracy? State takeovers and local government financial outcomes

• 成果类型: Article
• 署名作者: Singla, Akheil; Spreen, Thomas Luke; Shumberger, Jason
• 署名单位: Arizona State University; Arizona State University-Downtown Phoenix; University System of Maryland; University of Maryland College Park; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: PUBLIC ADMINISTRATION REVIEW
• ISSN/ISSBN: 0033-3352
• DOI: 10.1111/puar.13609
• 发表日期: 2023
• 页码: 911-929
• 关键词: cities; form

摘要

Many states possess the authority to intervene in local fiscal emergencies, in some cases curtailing decision-making powers of local officials through the appointment of an emergency financial manager. Previous research has recognized that these managers can push through unpopular reforms that may improve financial health but come at the expense of local control and democratic accountability. We assess the financial outcomes after eight recent state takeovers relative to a matched counterfactual comprised of similarly distressed general purpose local governments. The staggered difference-in-differences analysis shows emergency managers improve budgetary solvency and increase fiscal reserves. These enhancements are achieved through significant reduction of general fund expenditures. Several long-term indicators show deterioration in financial health after state intervention reflecting a significant decline in long-term assets. Overall, municipalities subjected to a state takeover did not realize significant long-run improvements in financial health indicators relative to counterfactual governments.