State Roles in Local Government Financial Management: A Comparative Analysis

摘要

This document is the first of two which report the role of States in local government financial management. In this volume, findings from nine sample States are summarized and analyzed, and general conclusions are developed about the factors which affect the character and effectiveness of State involvement. Data obtained from on - site discussions with State and local officials and from local financial reports are integrated and used to develop methods by which the States may exercise their oversight and regulatory capacity for local finance. Seven specific areas of management are examined: accounting, budgeting, debt management, property tax assessment, revenue, pensions, and cash management. The effectiveness of any State's involvement in local finance must be a direct function of the particular conditions that exist in the State. It is not possible, therefore, to draw conclusions of universal applicability. Conclusions can be made concerning how States perform their chosen functions and the effectiveness of their management methods. Specific discussion of the methods used in California, Minnesota, Montana, New Jersey, Pennsylvania, Rhode Island, Tennessee, Texas, and Washington is provided. For these nine States, a high level of State involvement in local finance was inversely correlated with the degree of urban concentration, but there was no consistent relationship between the degree of program funding partnership and the level of State involvement. The research methodology is appended.