Abstract: The causes of fiscal distress far outnumber the possible solutions that can be provided by public administration. Many American cities are facing bankruptcy, including Detroit, Michigan, where an Emergency Financial Manager has been appointed by the governor to rectify the severe problems of the withering metropolis. Such administrative appointments follow a federal structure in that the higher level of government must assume ultimate responsibility when local governments can no longer effectively manage their own affairs. A research field is emerging to deal with fiscal distress, but it has focused primarily on the predictive possibilities rather than the remedial actions necessary in many contexts. There is still the need for a coherent theoretical approach to inform emergency financial management across contexts and provide the justification for bureaucratic authority to address the problems. This paper proposes that fiscal distress needs to be considered from the perspectives of causal factors, public goods and services, and potential administrative reform solutions. The objective is to offer an approach that balances the drastic changes in local government with due consideration for maintaining a democratic administration in order to restore faith in the possibility of good governance.
Publication Year: 2013
Publication Date: 2013-12-01
Language: en
Type: article
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