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The Oxford Handbook of State and Local Government Finance

Online ISBN:
9780199940790
Print ISBN:
9780199765362
Publisher:
Oxford University Press
Book

The Oxford Handbook of State and Local Government Finance

Robert D. Ebel (ed.),
Robert D. Ebel
(ed.)
Economics, University of the District of Columbia
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Robert D. Ebel is a Professor of Economics and Public Administration at the University of the District of Columbia.

John E. Petersen (ed.)
John E. Petersen
(ed.)
Public Policy, George Mason University
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John E. Petersen is a Professor of Finance and Public Policy in the School of Public Policy at George Mason University.

Published online:
18 September 2012
Published in print:
21 March 2012
Online ISBN:
9780199940790
Print ISBN:
9780199765362
Publisher:
Oxford University Press

Abstract

State and local government fiscal systems have increasingly become vulnerable to economic changes. Over the past three decades, state and local deficits during economic recession have been larger and deeper each time. The impact of the Great Recession and its aftermath of feeble growth and lingering high unemployment has been dramatic both in scope and intensity. Before the crisis, long-term structural deficits were persistent for both individual governments and the entire sector as spending plans and patterns outpaced governments' revenue-generating capacity. The revenue systems of these governments eroded while the workloads and scope on the expenditure side of the state and local system budget continued to grow. This book evaluates the persistent problems in the fiscal systems of state and local governments. Each chapter provides a description of the discipline area; examines major developments in policy, practices and research; and opines on future prospects. Section I is a systematic discussion of the institutional, economic, and political framework that provides a background for understanding the structure and financial performance of the state and local sectors. Section II provides an overview of the various components of state and local revenue systems and how they reacted to the Great Recession. Section III turns to spending, borrowing, and financial management in the state and local sectors. Section IV looks ahead and speculates about how the state and local government sector's money-raising, spending, and service-delivery structures will adjust to the new circumstances.

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