MANAGING MUNICIPAL SERVICES IN AN ERA OF DECUNING FEDERAL ASSISTANCE

John P. Forrester and Charles J. Spindler

Review of Policy Research, 1990, vol. 10, issue 1, 63-84

Abstract: Federal aid to local governments was cutback throughout the Reagan administration. In dealing with these revenue cutbacks, ex‐recipients have a variety of options, to find new sources of revenue or reduce expenditures. Based on the perspectives of local government budget officials and environmental data, this study attempts to determine which governments will be most successful in minimizing service cutbacks in this environment. Using a cross‐sectional analysis and data concerning federal revenue sharing, we find both support and differences for many predictors found in previous case‐studies of fiscal stress. The differences likely stem from the new cutback environment. This study illustrates that management strategies under fiscal decentralization are strategic and not haphazard.

Date: 1990
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