The core question driving the study of local politics is-who or what governs local democracy? After decades of study, researchers continue to debate the relative merits of economic, political, institutional, and bureaucratic accounts of local democracy. By providing a test that incorporates each of these four different theoretical perspectives, that analyzes major spending decisions that cities make, and that includes a large, representative sample of localities, we offer a systematic examination of local government decision making. We find that each of the existing one-sided stories is incomplete. Economic constraints are critical in determining what a government can do but the overall balance between redistributional, allocational, and developmental spending is also strongly influenced by political imperatives, institutional constraints, and actual needs.