DIFFERENCES IN LEARNING PRACTICES AND VALUES IN NORTH–SOUTH CITY PARTNERSHIPS: TOWARDS A BROADER UNDERSTANDING OF MUTUALITY

This article addresses twinning between local governments in North and South, contributing to the past decade's discourse on institutional twinning in this journal. Local governments have increasingly become recognised as relevant actors in international development cooperation through city‐to‐city cooperation structures, which have been praised as an effective mechanism for local government capacity building. This article discusses the learning practices and the extent to which new knowledge is valued and adopted by twinning participants in both North and South and moreover whether learning benefits are mutual. In a study of three partnerships between Dutch municipalities and partner cities in Peru, South Africa and Nicaragua, 36 participants were interviewed. The findings reveal that learning in city‐to‐city partnerships is not mutual between North and South and that the benefits of ‘shared learning’—a rhetoric commonly used in the twinning discourse—are limited. Instead, other opportunities for mutuality arise for Northern municipalities from political and strategic benefits, such as staff loyalty and motivation. Mutuality in twinning hence deserves a broader interpretation than learning alone so that twinning benefits can be identified and maximised for both North and South, keeping cities interested and motivated. Copyright © 2012 John Wiley & Sons, Ltd.     

Is Small Beautiful? Testing the Direct and Nonlinear Effects of Size on Municipal Performance

Although the relationship between managerial capacity and local government performance is well established, research into the direct effect of population size on performance has yielded mixed findings. Using data for 787 municipalities in the Brazilian state of Minas Gerais, this article examines the direct and nonlinear effects (moderating and curvilinear) of population size on municipal performance. Performance is measured in terms of property tax collection and averaged for the 2005–07 mayoral administration. Mayor's age (a proxy for experience) and educational attainment serve as measures of managerial capacity. After controlling for political and economic factors, both municipal size and mayoral capacity are positively correlated with property tax collection. However, population size neither moderates managerial capacity nor relates curvilinearly to municipal performance. These findings challenge the promoters of fragmentation, which has been the trend in transitional and developing economies.     

Portable Innovation,Policy Wormholes,and Innovation Diffusion

This article explores the effects of city managers' career paths on the diffusion of climate policy innovation among municipal governments in the United States. Using the agent network diffusion (AND) model, the authors hypothesize that local climate policy innovations are portable and that cities may learn from distant jurisdictions to which they are connected through the career paths of managers, a phenomenon termed the “policy wormhole” effect. Employing a dyadic panel data set of more than 400 Florida cities from 2005 to 2010, these hypotheses are tested using dyadic event history analysis. The results support both the portable innovation hypothesis and the policy wormhole hypothesis. Cities can facilitate the diffusion of policy innovations by paying special attention to the recruitment process of city managers.     

Indigenous institutions and local government in the Torres Strait

The relationships between local governments and Indigenous institutions in Australia are unstudied, despite both being oriented to the local level. Related research focuses on the performance of Indigenous local governments, Indigenous forms of governance and its relation to local government, relations between local governments and Indigenous communities, and the intercultural dynamics of Indigenous and Western governance frameworks in local governments. This article presents the findings of a study that examines relations between local governments and Indigenous institutions in the Torres Strait, a relationship that is framed by s. 9(3) of the Local Government Act 2009 (Qld) (LGA) that allows local governments to ‘take account of Aboriginal tradition and Island custom’. A framework adapted from health-related studies, consisting of three alternative policy approaches—mainstreaming, indigenisation, and hybridisation—is used in this study to characterise relationships between local governments and Indigenous institutions. Kinship and country, two important Indigenous institutions, are marginalised in Queensland's mainstream system of local government, which in turn creates obstacles for Aboriginal and Torres Strait Islander people from participating and engaging in local government processes.

Points for practitioners

• Government that does not recognise the institutions which are fundamental to how Indigenous people govern will marginalise them from power.
• Indigenous institutions are legitimate actors whose voice must be considered within mainstreaming discussions.
• Representation within indigenous institutions influences local government relations.

     

The Adoption and Abandonment of Council‐Manager Government

What accounts for patterns of city adoption and abandonment of council‐manager government? Despite dozens of empirical studies, we lack a systematic understanding of these forces over time because previous work has relied on cross‐sectional designs or analysis of change over short periods. This article begins to fill this lacuna by constructing a historical data set spanning 75 years for the 191 largest cities with either mayor‐council or council‐manager governments in 1930. Event history analysis is applied to isolate adoption and abandonment trends and to provide new evidence revealing the forces that have shaped the trajectory of institutional change in U.S. cities. This analysis reveals that social context factors—in particular, economic conditions—generate both adoptions and abandonments.     

Regionalization,administrative reform and democratization: Nicaragua 1979–1984

The article discusses the major events and debates that have taken place during the reform and democratization of subnational government in Nicaragua from the overthrow of the Somoza dictatorship to late 1984. Developments during this period highlight five distinct areas of reform that must be addressed as part of any process of state democratization: (a) selection and maintenance of local officials; (b) integration of popular participation; (c) definition of the range of local authority; (d) resources for local development; and (e) relation to other levels of government. These issues are addressed through a discussion focusing heavily on local government during the first 3 years, then on the experience of the newly created regional governments and decentralization beginning in mid—1982, and finally on the early—and quite divergent—experience with the development of zonal government between the municipal and regional levels. The specific resolution of these five sets of issues is part of the development of the revolutionary process in Nicaragua, and will strongly shape the political and developmental significance of the resulting local government.     

Tax decentralization and local government size

This paper investigates the relationship between fiscal federalism and the sizes of local governments. While many empirical studies emphasized that grants encourage the growth of local public spending and local taxes constrain it, they are more silent regarding the effects of different types of tax autonomy. The paper addresses this issue by arguing that tax decentralization as organized on tax bases used only by local governments (tax-separation), rather than on tax-base sharing, would restrain local public expenditures. Using an unbalanced panel of OECD countries, the key finding is that only property taxes—mostly based on a “tax-separation” scheme—seem to favor smaller local governments. Thus, while tax decentralization is a necessary condition for limiting the growth of local governments, it does not appear sufficient, as tax-separation schemes among government levels would in fact be required.     

Constitutional Tax and Expenditure Limitation in Colorado: The Impact on Municipal Governments

Tax and expenditure limitations (TELs) have become a pervasive influence on local government fiscal affairs. Explanations for the spread of TELs suggest that voters thought local government was growing more than needed. Thus, TELs were intended to constrain growth and reduce the size of local governments. This article's purpose was to determine the impact of two separate kinds of TELs, one a property tax measure, and the other a comprehensive revenue and expenditure limit, upon the growth of municipal governments in Colorado. Using a panel data set on municipal budgets (1975–1996), the article demonstrates three major points: 1) the effectiveness of a TEL in achieving reductions in local government revenue and spending growth depends upon the nature of the TEL; 2) the comprehensive TEL did effectively constrain growth and reduce local government reliance on the property tax, despite the local options for exemption; and 3) TELs do not have uniform impacts among governments of different population.     

The impact of government structure on local public expenditures

Though the relationship between local government structure and expenditure has received considerable attention, there is little consensus as to how the features of representative government affect local expenditure. An exception is city council size, which has consistently been found to be positively related to spending. Previous results rely on cross-sectional estimation which may be subject to omitted variable bias. This paper analyzes three components of municipal governments—the form of government, the size of the city council, and the election method of city councilors. Once fixed effects estimation is employed, the positive relationship between city council size and expenditure disappears.     

An aggregative model for municipal economic planning

The growth and increasing complexity of municipal governments have been phenomenal in recent years. Thus, economic planning of the municipality has become one of the most difficult administrative functions of local government officials. Yet economic systems analysis of cities has been generally neglected by economists and management scientists. This paper presents a methodology for the effective long-range economic planning of a municipal government. More specifically, it applies the goal programming model to design optimum aggregative model for municipal economic planning.     

Taxation and local government accountability in a clientelist context: Colombia

Increasing the accountability of local government is an important objective of decentralisation. One way to achieve greater accountability is to enhance the reliance of local governments on locally raised taxes. Property taxes are a prime source of increased revenue for local governments. However, it is difficult to levy them effectively in clientelist political systems, like that of Colombia. Recent reforms there have increased the capacity of municipal governments to raise revenue through property taxation. Giving responsibility for assessments of property values to an independent national agency has been especially useful. Municipal government finances are now to some degree independent and protected from the influence of clientelistic political parties. However continuing problems include: the reluctance of mayors to enforce taxation liabilities; the obstacles to opening local political debates on taxation; and the problems faced by national governments in trying to monitor municipal revenues and expenditures. Copyright © 2003 John Wiley & Sons, Ltd.     

“E” the People: Do U.S. Municipal Government Web Sites Support Public Involvement?

To what extent do local government Web sites support practical, meaningful public involvement? Fifteen years after the adoption and diffusion of the World Wide Web, the answer to this question remains cloudy and controversial. The promise—and peril—of Web‐based public involvement, known as e‐democracy, has been widely debated. Much of the debate has focused on theoretical abstractions or extrapolations of current political or technological trends. Empirical studies have been limited to reports on pilot projects, case studies, or special population surveys. This paper contributes to our empirical understanding of the question. It reports results of a recent comprehensive survey of official government Web sites in the principal cities of the 100 largest U.S. metropolitan areas. In particular, it examines whether and how U.S. city government Web sites facilitate users’ involvement in local public issues.     

Negative Externality of Fiscal Problems: Dissecting the Contagion Effect of Municipal Bankruptcy

The fiscal decision of one local government may spill over to other localities, and such externality could justify and inform policy making by a higher‐level government. Theories of municipal bond market contagion postulate that once a local government files for bankruptcy, localities sharing similar characteristics will be perceived negatively by creditors and charged a higher interest rate. In this article, empirical examination of the second‐largest municipal bankruptcy in American history shows no support for general contagion based on geographic proximity. That is, nearby localities did not pay a higher interest rate after the bankruptcy. However, case‐specific contagion formed around borrower‐ and bond‐specific characteristics contributing to the bankruptcy: general‐purpose borrowers and general‐obligation bonds experienced increased borrowing costs after the bankruptcy. These findings have implications for states considering granting authorizations for municipal bankruptcy or providing financial assistance to struggling localities, as well as for local governments planning to access the municipal bond market.     

URBAN PLANNING,POLICY AND MANAGEMENT*

Abstract: This paper deals with some important sources of confusion in discussions of urban issues. The first part distinguishes urban planning as a “future oriented” activity, from urban management which is primarily concerned with resource allocation. (The nature of urban development — interdependence and long life — makes a long-term perspective important.) When urban management aims to implement a plan the two are complementary. Urban policy covers a broader range of issues. The second part distinguishes four levels of debate about urban issues: ideological, political, operational and technical. Frequently debates in urban studies are not coherent because the participants are arguing at different levels and therefore make different assumptions about what is given and what can be varied. It is argued that the various levels form a hierarchy so that debates at any level need to assume particular positions with respect to higher level questions. Ideological issues include individual versus collective perspective, capitalist versus socialist, the appropriate role of markets and governments and the relative weight given to equity and efficiency criteria. The examples of political issues discussed are rationality versus group pressure as explanations of government behaviour, and whether planning is mainly a political or a professional activity. Operational issues include the appropriate level of government for carrying out urban functions and the role of statutory planning and other policy measures. Technical issues focus on predicting the effects of policy measures and external changes on cities. The different levels are illustrated by a discussion of policy towards inner city areas.     

Implementing GASB 45: Recommended Best Practices in Local Government

The Governmental Accounting Standards Board issued Statement No. 45—Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions in 2004, requiring local governments to actuarially determine their annual required contribution to fund other postemployment benefits (OPEB) and to account for the unfunded amount as a liability on annual financial statements. This article discusses best practices on the implementation and management of this accounting standard, including actuarial practices, funding decisions, and benefit changes. It also presents how Phase I cities and counties in North Carolina implemented Statement No. 45 for further explanation. The hope is that these best practices will serve as a guidepost for making OPEB policy decisions, especially among smaller local governments, on the criteria of financial accountability and sustainability.     

Patterns of Local Policy Disruption: Regulatory Responses to Uber in Ten North American Cities

Since its inception in 2009, Uber has grown into a technology behemoth, with operations in over 70 countries and 500 cities around the world. Along the way, it has successfully forced regulatory upheaval in hundreds of local taxi markets controlled by municipal authorities. In this sense, Uber is not only a market disruptor, but also a policy disruptor. This paper examines the nature of such policy disruption at the local level by reviewing regulatory responses to Uber in ten North American cities. We find that regulatory outcomes are a function of two factors: Uber’s government relations strategy, either cooperative or confrontational, and the degree to which local governments perceive Uber as complementary or harmful to the existing marketplace. We conclude by proposing a typology of regulatory responses to Uber as a basis to identify patterns in the behavior of municipal regulatory authorities and political leaders.     

Unfunded Mandates and Fiscal Structure: Empirical Evidence from a Synthetic Control Model

An unfunded expenditure mandate occurs when governments are required to provide a good or service by a higher level of government without an accompanying revenue source. There are no empirical studies providing causal evidence on the fiscal influence of intergovernmental mandates. This article examines Florida's 1990 constitutional Amendment 3, which sought to limit unfunded state mandates on municipal and county governments. The synthetic control method, an empirical technique for drawing causal inferences from case studies, estimates the effect of Amendment 3 on state expenditures and total transfers to local governments. The results indicate that state expenditures increased by an annual average of 9.5 percent, while state transfers to all local governments were unaffected. However, the municipalities protected by Amendment 3 saw intergovernmental revenue from the state decrease by 10 percent annually, which suggests that remaining mandates likely targeted special districts, encouraging the fragmentation of local public service delivery.     

In search of a governance institution model for Jakarta Metropolitan Area (JMA) under Indonesia's new decentralisation policy: old problems,new challenges

This study explores a possible governance model for Jakarta Metropolitan Area (JMA) under Indonesia's new Decentralisation Policy. At present the management of JMA development is coordinated by Badan Koordinasi Pembangunan Jabodetabekjur (BKSP) —Coordinating Board for JMA Development, but this agency is ineffective and powerless to perform its tasks because of lack of authority and power. The establishment of JMA governance model should take into account the existence of the BKSP which has been politically accepted by all provincial and local governments in the region. Involvement of central government in JMA governance is very important. A mixed model of urban governance is most suitable for the JMA. Thereunder the central government should have authority to plan and develop major physical infrastructure for the whole JMA, while the provincial and local governments retain their respective general administrative functions. Copyright © 2008 John Wiley & Sons, Ltd.     

When Do Municipal Consolidations Reduce Government Expenditures? Evidence on the Role of Local Involvement

Higher levels of government motivate municipal consolidations as a tool to increase efficiency in the local government sector, yet research shows that consolidations typically fail to deliver the promised spending reductions. Since mergers often require significant changes to institutional structures, one explanation is that local decision makers can substantially influence the outcomes of the consolidation process. To explore this possibility, this article contrasts “encouraged but voluntary” mergers with those that were “forced” on local governments in the state of New South Wales, Australia. Results show that voluntary mergers resulted in a 10 percent decline in total per capita expenditures, but forced consolidations failed to reduce spending across the board. The policy conclusion is that decision makers considering structural reform should invest in obtaining the support and participation of local government decision makers.     

Local Officials’ Support for PILOTs/SILOTs: Nonprofit Engagement,Economic Stress,and Politics

Nonprofit property tax exemption has become a major policy issue as the collapse of the housing market, the Great Recession, and property tax caps have threatened local tax collections. Consequently, many local governments have sought to obtain payments in lieu of taxes (PILOTs) from charities that are formally exempt from property taxes. Using a 2010 survey of local government officials in Indiana, this article examines whether support for PILOT policies is related to officials’ personal involvement with nonprofits, their views on government–nonprofit relationships, the type of position they hold, the level of economic distress in the county, local political conditions, and local nonprofit wealth. The findings support most of these hypotheses but also show that attitudes toward PILOTs appear to be shaped by somewhat different concerns than attitudes toward services in lieu of taxes (SILOTs).