Outcomes

Revisiting the (lack of) association between objective and subjective measures of local fiscal condition

“…It is multidimensional in nature, capturing short‐term budget outcomes such as annual revenues and expenditures, and long‐term financial implications, such as assets and liabilities (Maher, 2013, 2021). Fiscal condition is complicated given that a wide range of socioeconomic, political, institutional, and organizational factors shape or are involved in it; it is also not static and can change for a host of reasons, including long‐term demographic changes and short‐term fiscal shocks incurred due to, for example, natural disasters (Maher et al, 2023).…”

“…Therefore, objective measures could be less permissible and/or mistimed. Furthermore, when thinking about local fiscal conditions, not only do specific ratios matter but there is growing evidence that context also matters (Maher, 2021; Maher et al, 2023; Nollenberger et al, 2003). It is nearly impossible to capture the institutional, fiscal, economic, and demographic nuances necessary to fully assess fiscal conditions using large databases.…”

Understanding Municipal Fiscal Health: A Model for Local Governments in the USA.Maher, Craig,SunghoPark, Bruce D.McDonaldIII, and Steven C.Deller. 2023. New York: Routledge, 329 pages, $59.95 paperback edition, $160.00 hardback edition, $53.05 eBook, ISBN 9781032055428

“…Shelves of government finance experts already include classics like The Financial Analysis of Governments by Berne and Schramm (1986), Evaluating Financial Condition (2003) by Groves, Nollenberger, and Valente (with all its earlier editions), Managing the Fiscal Metropolis (2011) by R. Hendrick, The Handbook of Local Government Fiscal Health (2013) by Levine et al, to name a few. So, what sets Maher et al (2023) apart? What makes it relevant and worthwhile?…”

“…As a field of practice and research, it is facing growing pressures to automate financial reporting and find effective ways to monitor government performance. In this context, Maher et al's (2023) show us what it takes to monitor and evaluate the financial condition of a municipality with tools of government finance. The book is enriching and catalyzes our thinking on what financial monitoring of the future may look like.…”

“…Inspired by logic modeling, the framework effectively linearizes our thinking. In view of many variables that are potentially relevant for financial condition analysis and that have baffled every researcher and practitioner of this field, Maher et al's (2023) pragmatic and clear‐cut conceptualization of these variables into inputs, outputs, and outcomes is a breath of fresh air.…”