Decree or democracy? State takeovers and local government financial outcomes

dc.contributor.authorSingla, Akheil
dc.contributor.authorSpreen, Thomas Luke
dc.contributor.authorShumberger, Jason
dc.date.accessioned2023-10-04T18:24:17Z
dc.date.available2023-10-04T18:24:17Z
dc.date.issued2023-02-05
dc.description.abstractMany 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.
dc.description.urihttps://doi.org/10.1111/puar.13609
dc.identifierhttps://doi.org/10.13016/dspace/loty-moq4
dc.identifier.citationSingla, Akheil, Spreen, Thomas Luke, and Shumberger, Jason. 2023. “ Decree or Democracy? State Takeovers and Local Government Financial Outcomes.” Public Administration Review 83(4): 911–929.
dc.identifier.urihttp://hdl.handle.net/1903/30676
dc.language.isoen_US
dc.publisherWiley
dc.relation.isAvailableAtSchool of Public Policyen_us
dc.relation.isAvailableAtPublic Policyen_us
dc.relation.isAvailableAtDigital Repository at the University of Marylanden_us
dc.relation.isAvailableAtUniversity of Maryland (College Park, MD)en_us
dc.titleDecree or democracy? State takeovers and local government financial outcomes
dc.typeArticle
local.equitableAccessSubmissionNo

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