The Impact of State Government Fiscal Crises on Local Governments and Schools
Abstract
This paper discusses budgetary problems facing state
governments, and explores the relationship between state
government fiscal conditions and potential impacts on municipal
governments and school districts. It examines how state budget
cuts have affected the state funding of municipal governments
and how these governments are likely to respond to reductions in
state funding. The paper discusses the possibilities that the
state government budget crisis will increase unfunded mandates
imposed on local governments or result in an implicit shifting
of costs from the state to local governments. A version of
this paper was published in State and
Local Government Review,
vol. 36, no. 2, (Spring 2004): 86-102.