Cities' financial challenges are leading directly to fundamental governance challenges, including questions that are not normally part of budgetary discussions. The consequences for city life and municipal functions may be substantial.
Bill Barnes reports from a presentation at a National League of Cities conference. Michael Pagano of the University of Illinois at Chicago, was one of the speakers.
Pagano said "that we are in a 'unique time in the history of public finance,' a time when leaders and citizens can and should broach fundamental issues."
"...the recession and financial fiasco and the political responses to them have combined with, exacerbated, and highlighted long-term trends in the basic 'architecture of public finance.' The result is a combustible and excruciating situation that will linger for at least several more years.
He predicts that, to cope responsibly, communities will have to negotiate 'new social compacts' upon which city finances can be re-constructed."
Thanks to Bill Barnes
FULL STORY: A Unique time in Public finance
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