The Role of Slack in Local Government Finances

The research presented here adopts an organizational approach to develop three regression models that examine why local governments accumulate slack in the form of unreserved fund balances, and what is the impact of slack resources on local governments' short‐term fiscal conditions and decisions about spending and revenues. Using data on Chicago suburban municipalities and their governments, the first model estimates the effects of long‐term and short‐term conditions (fiscal and governing) on unreserved fund balances. The second and third models examine the impact of slack resources and other factors on year‐end deficits or surpluses and changes in spending and own‐source revenues. The results show that ending balances, expenditures (size), and long‐term fiscal conditions have the greatest effect on fund balances, and that slack and current fiscal conditions have the greatest effect on ending balances and changes in revenues and spending.     

PUBLIC SERVICE MODERNIZATION AND TRADE UNION REFORM: TOWARDS MANAGERIAL LED RENEWAL?

It is a curious feature of the debate about the UK Labour government’s modernization agenda that the consequences for trade unions have been almost wholly neglected. Focusing on a case study of UNISON, the public service trade union that is dominant in local government and health, this paper argues that UNISON has emulated key aspects of the modernization agenda, adopting a dual strategy to union renewal. It has attempted to rebuild workplace organization, but has placed strong emphasis on managerial‐led renewal, adopting many components of the target culture. These measures have created tensions within the organization that mirror some of the broader contradictions of the modernization agenda. The paper concludes by considering the implications of these findings for public service union renewal.