Study illustrates the dynamics of managing the solid waste stream, and how increases in collection costs impact generation rates and other variables. MOST local governments in the United States are facing severe fiscal management crises. Stresses caused by national and regional economic downturns, a steady decline in state and federal support, and opposition to traditional revenue sources like the local property tax have all negatively affected cash flows. Nonetheless, local government continues to bear the responsibility for providing solid waste management, education, police and fire protection, and other services. This has forced public managers to consider new policies which incorporate not only innovative means of waste disposal, but also innovative approaches to funding this expensive service. In 2001, the New Hampshire Solid Waste Task Force found that transportation costs, tight labor markets, unpredictable fuel prices, and industry concentration resulted in average tipping fees higher than at any time in the previous ten years. The task force found that one of the most successful programs initiated to both reduce generation rates and increase recycling rates was the Pay-As-You-Throw (PAYT) program.
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