When Government Fails: The Orange County Bankruptcy
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Reinventing State and Local Governments Reinventing State and Local Governments
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9 Recommendations for the Future
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Published:06 January 1998
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Abstract
Many good reforms were instituted after the Orange County fiscal crisis, but they have not gone far enough in dealing with the bigger issues. This chapter presents ten policy recommendations resulting from the lessons learned from the Orange County bankruptcy. Along with each proposal, the chapter offers a brief discussion of why it is a significant issue for policymakers. The recommendations are based on the analysis presented in earlier chapters on the causes, response to the fiscal emergency, fiscal recovery plans, and local government reforms. Finally, the chapter looks at the broader issue of the need to “reinvent” state and local government relations. One recommendation is for local governments to maintain high standards for fiscal oversight and accountability. Moreover, local elected officials need more financial expertise and objective professional advice so that they can make sound fiscal policy decisions in the complex world of municipal finance.
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