What Do We Really Know about Municipal Finance?

Abstract

Despite claims that cities have experienced fiscal stress, aiztafiom other sources show that cities have enduredjinancial challenges by finding new revenue sources and techniques. An analysis of census data from 1967-2000 indicates that the pattern of municipal revenues has changed from reliance on property tares to greater reliance on charges. While revenues have outpaced expenditures, both revenues and expenditures have grown far more than would have been necessary to keep pace with inflation and indicate a worrisome trend toward borrowing. Howevec limitations of current data collection raise questions of validity. Data collection and reporting must improve if appropriate policy decisions are to follow.