1 / 17

Managing the Fiscal Metropolis During Recessions

Managing the Fiscal Metropolis During Recessions. Has anything really changed?. FINANCIAL CONDITION. How to Measure Financial Condition?. Balance is measured by looking at financial characteristics relative to each other within governments (and between governments)

clovis
Download Presentation

Managing the Fiscal Metropolis During Recessions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Managing the Fiscal Metropolis During Recessions Has anything really changed?

  2. FINANCIAL CONDITION

  3. How to Measure Financial Condition? • Balance is measured by looking at financial characteristics relative to each other within governments (and between governments) • Financial condition has dimensions that are not easily compared • Cash solvency • Budget solvency • Service Level • Long-term solvency • Financial Condition is static; Fiscal Stress is dynamic (change in financial condition)

  4. Measurement of Financial Condition

  5. Fiscal Threats and Opportunities

  6. Management of Fiscal Stress • Delaying: Artful budget manipulation, creative financial management, one-time solutions (buy time) • Stretching and resisting: Strategic, innovative, and selective revenue and spending changes (protect priorities) • Cutting and smoothing: Visible and/or dramatic cuts in services and revenue increases • Extreme survival: Unrealistic, escapist, and radical measures to function at minimum level

  7. Options for Handing Fiscal Stress, I

  8. Options for Handing Fiscal Stress, II

  9. Options for Handing Fiscal Stress, III

  10. Options for Handing Fiscal Stress, IV

  11. Important Threat and Opportunity • Growth initiation: a sleepy town is awakened to residential developers knocking at their door • Rapid growth: adding residents and commerce (later on) at a high rate through development of existing land and annexation • Built out: growth rate declines and anticipating the day when no growth • Redevelopment:population stagnant or declining

  12. Institutional Context

  13. Policies and Practices that affect Financial Condition • Fiscal capacity is one of most important factors in financial condition • Consistent choice of sound fiscal policies and good financial management (professional heuristics) • Limit conflict among government officials (transaction costs) • Take long-term perspective on growth, development, and capital maintenance • There is more than one path to good financial condition

More Related