Strategic Path to Fiscal Sustainability: Revenue Diversification and the Use of Debt By Us Municipal Governments

Strategic Path to Fiscal Sustainability: Revenue Diversification and the Use of Debt By Us Municipal Governments

Date: August 2012
Creator: Maleckaite, Vaida
Description: This work explores the relationship between municipal government debt and revenue diversification using a prism of institutional and fiscal interactions, concentrating on revenue fungibility effects over time and on the role of state-imposed constraints. A diversified revenue structure tends to stabilize revenue levels by balancing income-elastic and inelastic revenue sources. The impact of such diversity has been the subject of much research on expenditure and service levels among state and local governments. Considerably less research has been conducted on its potential relationship with debt, although capital financing is a necessary and often-utilized mechanism for funding capital and operational spending for local governments. Since it is well known that debt payments are fixed in the short run, they require sufficient revenue adequacy through economic highs and lows. It is thus argued that local governments with more diversified revenue structures are better able to utilize debt financing since revenue diversity mitigates the risk of borrowing by providing for greater fiscal predictability in the long run. This hypothesis is tested on two samples - a large sample of cities in Massachusetts from 2000 through 2009, as well as a cross-state sample, encompassing the cities from the majority of U.S. states. The findings of ...
Contributing Partner: UNT Libraries
The Interactive Effect of Fund Balance and Revenue Diversification on Local Government Fiscal Sustainability

The Interactive Effect of Fund Balance and Revenue Diversification on Local Government Fiscal Sustainability

Date: August 2013
Creator: Wachira, David W.
Description: This dissertation explores how cities achieve fiscal sustainability—the financial capacity to consistently meet basic public service responsibilities regardless of economic conditions. Two research questions arise from the interplay between the local economy and fiscal sustainability. First, what management tools do cities use to achieve fiscal sustainability given that economic conditions are largely outside their control? Second, what explains the variation among cities in the financial management tools used to achieve fiscal sustainability? The financial management tools of interest in this study are revenue diversity and the size of the fund balance. It is conjectured that financial management tools interact with each other prompting the tools to function as policy substitutes for each other. Cities achieve fiscal sustainability by strategically choosing budget-balancing tools appropriate to their economic conditions. The study utilizes a cross-state comparison from 351 Massachusetts municipal governments using panel data from 2000 to 2009 and 993 New York municipal governments using panel data from 2001 to 2010. Using theories of fiscal sustainability and revenue diversification, several models are proposed that test the interactive effects of fund balance size and revenue diversity on fiscal sustainability. The results from the empirical analyses show that cities use various financial management tools to ...
Contributing Partner: UNT Libraries
The North Texan, Volume 44, Number 1, March 1994

The North Texan, Volume 44, Number 1, March 1994

Date: March 1994
Creator: University of North Texas
Description: The North Texan includes articles and notes about University of North Texas students, faculty, and alumni activities.
Contributing Partner: University Relations, Communications & Marketing department for UNT
The North Texan, Volume 43, Number 3, September 1993

The North Texan, Volume 43, Number 3, September 1993

Date: September 1993
Creator: University of North Texas
Description: The North Texan includes articles and notes about University of North Texas students, faculty, and alumni activities.
Contributing Partner: University Relations, Communications & Marketing department for UNT
The North Texan, Volume 44, Number 2, June 1994

The North Texan, Volume 44, Number 2, June 1994

Date: June 1994
Creator: University of North Texas
Description: The North Texan includes articles and notes about University of North Texas students, faculty, and alumni activities.
Contributing Partner: University Relations, Communications & Marketing department for UNT
ReSource, Volume 11, Number 1, Fall 1994

ReSource, Volume 11, Number 1, Fall 1994

Date: 1994
Creator: University of North Texas
Description: ReSource magazine includes articles and notes about research at University of North Texas in various academic fields.
Contributing Partner: University Relations, Communications & Marketing department for UNT
ReSource, Volume 10, Number 1, Fall 1993

ReSource, Volume 10, Number 1, Fall 1993

Date: 1993
Creator: University of North Texas
Description: ReSource magazine includes articles and notes about research at University of North Texas in various academic fields.
Contributing Partner: University Relations, Communications & Marketing department for UNT
The North Texan, Volume 43, Number 4, December 1993

The North Texan, Volume 43, Number 4, December 1993

Date: December 1993
Creator: University of North Texas
Description: The North Texan includes articles and notes about University of North Texas students, faculty, and alumni activities.
Contributing Partner: University Relations, Communications & Marketing department for UNT
The North Texan, Volume 43, Number 2, June 1993

The North Texan, Volume 43, Number 2, June 1993

Date: June 1993
Creator: University of North Texas
Description: The North Texan includes articles and notes about University of North Texas students, faculty, and alumni activities.
Contributing Partner: University Relations, Communications & Marketing department for UNT