The Municipal Financial Crisis: A Framework for Understanding and Fixing Government Budgeting

Description

City governments are going bankrupt. Even the ones that aren’t are often stuck in financial chaos. It is easy to blame pensions, poor leadership, or a bad economy. But the problems go much deeper. With decades of experience in local government, author Mark Moses showcases the inside world of the city decision-making process that has spawned these crises. It becomes clear: City governments are maxing out their budgets because they are trying to maximize services. This book, likely the most ambitious attempt by someone who has worked in government to radically examine the delivery of municipal services since 'Reinventing Government' was published more than 25 years ago, explores why city governments pursue an open-ended mission and why bailouts and trendy budgeting processes will be, at best, only temporary solutions. Of interest to current and future city council members, regional and state government officials, those covering city government, financial analysts, city management, and individuals and organizations interested in influencing city policy, this book argues that cities won’t thrive until city hall is disrupted. Acknowledgments Contents About the Author List of Tables 1 Introduction 2 Cities in Crisis Deciding Where to Start Missions, Visions, and Decisions Revisiting Assumptions Faces of the Crisis 3 Inside the Crisis of Municipal Budgeting The Finance Director When Every Problem Is a Budget Problem Governing the Modern Municipal Organization Elected Officials and the Budget The Budget Ritual The Bankrupt Meaning of “Balanced Budget” The Separate Worlds of Budgeting and Financial Reporting Local Government Is Not a Business The State of the Traditional Budgeting Process 4 Conventional Budgeting Solutions Zero-Base Budgeting Performance Budgeting The Dark Future of Municipal Budgeting 5 The Ritual of Financial Analysis and Its Failure Financial and Economic Analysis Applied The Invisible Source of City Revenues The Total Cost of Municipal Monopolies and Franchises The Total Cost of Municipal Ventures Analyzing Other Services and Activities Defining Financial Sustainability Foreseeable Future 6 Bankrupt Financial Remedies Operational Improvements (Technology and Process Efficiencies) Service Delivery Restructuring: Privatization and Regionalization Privatization Regionalization: Consolidation and Shared Services Community Engagement and Budget Participation More and Better Information: Data and Transparency Other Financial Tactics: Policies and Diagnostics New Paradigms for Decision-Making The Limits of Municipal Bankruptcy Additional Tax Revenues Thoughts and Prayers 7 Discovering the Value of City Government My Journey What Is a City Government? Evaluating and Classifying Municipal Activities 8 Municipal Decision-Making Understood Group Force vs. Individual Freedom Decision-Making Decision-Making Standards Decision-Making Methods Unintended Consequences and Merely Consequences The Path Forward 9 Budgeting for Scope Budgeting for Scope Activities That Are Worth Retaining Are Worth Fixing Scoping the Organization’s Internal Policies When It Is Too Late A Solution or Just Another Nonsolution 10 Municipal Government After the Crisis Additional Recommendations, Blind Spots, and Deal Making Predictions Fixing Municipal Budgeting Bibliography Index