Simulating Massachusetts Municipalities' Recession Readiness: Early Warning of a Perfect Storm?

We simulate effects of two recessions on Massachusetts municipalities in light of their relative dependence on state aid, capacity to increase property taxes under Proposition 2½ constraints, growth, and nondiscretionary costs. We also explore the efficacy of local government stabilization funds in light of current literature on stabilization funds, slack resources in general, and the state–local fiscal relationship. We found substantial variance in Massachusetts municipalities' recession readiness. Fifty‐five (16 percent) municipalities have insufficient resources to weather a severe recession scenario without significant sacrifice due to reliance on state grants‐in‐aid, low property tax revenue growth, erosion of property tax revenue increments by increases in nondiscretionary expenditures, and inadequate stabilization funds.     

Federal Highway Assistance Funds in the State Infrastructure Bank Programs: Mechanisms,Merits, and Modifications

In response to the declining financial resources for state transportation infrastructures, the National Highway System Designation Act of 1995 (P. L. 104–159) authorized the establishment of the State Infrastructure Bank (SIB) Pilot Programs. This paper shows how the federal assistance funds deposited into the SIB equity fund can maximize state highway resources through a simulation. From 1998 to 2003, one dollar of the federal funds augmented state highway expenditures by 5.24 dollars in a specific year in contrast to the original intention of perpetuating state highway spending. This study further suggests ways to modify and improve the current SIB mechanism.     

EQUITY IN CRIMINAL JUSTICE:

This research examines the punishment decisions of 166 respondents, 36 of whom are employed in criminal justice occupations. Comparison of the decisions of criminal justice respondents and non-criminal justice respondents provides a test of two constructs in equity theory: inequity between offenders and victim and inequity between offender and accomplice. Results strongly, support the first construct and equivocally support the second.