Testing for Fiscal Illusion in Wisconsin Towns

Fiscal illusion, a theory of the impact of government revenue structures on voter decision-making, has been studied extensively by economists and political scientists; however, empirical verification has been limited. This study builds on Lowery's (1987a) work by examining the relationship between suggested illusionary revenues and measures of electoral stress. Here, electoral stress is measured as constituent contacting—one possible measure of voter influence—for local government officials up for re-election. Using a combination of survey data from over 1,000 Wisconsin town board members, audited fiscal data and U.S. Census data, we were able to test for fiscal illusion. Our findings show that when looking at five revenue types (conditional grants, unconditional grants, property taxes, user fees and charges, and debt service) there is some evidence suggesting officials seeking another term in office will tend to support fees and charges as a revenue structure over other structures. Overall, there is little consistent evidence suggesting that elected officials are manipulating revenue structures for electoral gain. Revenue structures are mostly influenced by social and economic factors, such as median household income, population changes, and per capita property valuation.     

The Local Regulatory State: A Case of Double Standards?

Two starkly contrasting strategies are discernible in the way local authorities currently approach and go about their regulatory and enforcement responsibilities. On the one hand, a “deterrence” strategy of “pursue and punish” is robustly pursued in many local areas in relation to individuals who infringe and contravene local regulations, notably in relation to “street scene” issues of littering, waste/recycling and materials sorting/separation, smoking in public places, parking, cycling on pavements, feeding pigeons, and so on, while, on the other, a much more positive “compliance” strategy of “counsel and conduce” is widely promoted and pursued in relation to the regulation of standards in local businesses, for example, in relation to public and environmental health/hygiene, health and safety in the workplace, animal welfare, and licensing of premises.

Why do local authorities operate with such apparent double standards? Why do comparatively minor infringements by local citizens so frequently result in the summary imposition of fixed penalties (which can be quite punitive for those on low incomes) while at the same time local businesses are mostly treated to a regulatory culture which is much more sympathetic and supportive in promoting compliance with the rules? This article draws on research conducted in different local regulatory settings which illustrates the two contrasting regimes in practice. It presents five propositions which help us to understand and explain the apparent double standards and it concludes by considering the steps that might be taken to ensure a more equitable and consistent local regulatory framework for the future.     

Citizen Participation in German and Spanish Local Governments: A Comparative Study

In recent decades, citizens have become more and more disenchanted with the traditional institutions of representative government, detached from political parties, and disillusioned with old forms of civic engagement and participation. This has favored a renewed interest in citizen engagement and citizen participation and a growing re-emergence in academic and political discourse of ideas and values of community, localism, and citizen participation. This article analyzes the main objectives and the actual implementation of citizen participation initiatives in the local governments of two European Continental countries, Germany and Spain. The aim is to find out the factors that affect the possible decoupling between the objectives and the “real” uses of citizen participation. Our results show that most local governments in these two countries are using citizen participation only to increase the level of perceived legitimacy or to comply minimally with legal requirements, without really taking advantage of citizen participation to enhance decision-making processes. These findings confirm that institutional theory becomes the rationale to explain the implementation of citizen participation in these two European Continental countries.     

Inter-Governmental Policy Implementation: State Inducements to Encourage Implementation at the Local Level

This article investigates how State departments can best equip Local government to implement State environmental protection legislation effectively. Research on joint implementation by the then New South Wales Environment Protection Authority and NSW Local government authorities is reviewed to explore inducements and constraints on intergovernmental policy implementation, including the multi-jurisdictional nature of policy.     

Contracting Out Local Government Services to Private Agents: An Analysis of Contract Design and Service Delivery Performance in Ghana

Contracting out is generally justified on the principle that as governments contract out part of their responsibilities in service provision to private agents, they harness the power of market competition which leads to efficiency in service provision. In working with private contractors, local governments (LGs) face problems related to agent opportunism, while agents also face risks such as dereliction of payment responsibility by LGs for services delivered. The literature shows that these problems are addressed through a web of contractual arrangements. Using agency theory, this study investigates the relationship between contract design and quality of services delivery in three Ghanaian cities (Accra, Kumasi and Tema). The study found a surprising negative correlation between contract document and agents' performance. The paper concludes that effectiveness of contracting out documents depends on contract management capacity of government administrators. In its absence, LGs that contract out are exposed to risks. The paper uses the findings to reflect on the inherent deficiencies in agency theory and Africanist literature on patronage.     

Using Appreciative Inquiry to Engage the Citizenry: Four Potential Challenges for Public Administrators

In the United States, calls for new citizen engagement strategies have continued to grow at the local government level. One answer is Appreciative Inquiry. As part of a larger study conducted in 2007, the question was posed to public administrators, “What challenges do you see regarding using an Appreciative Inquiry approach to increase citizen participation in local government?” Findings based on a content analysis of the data identified four challenges in particular. Discussion suggests public managers need to be aware of these challenges but depending on local conditions they can be mitigated or overcome.     

Absence of Vertical Linkages and the Quest for Decentralized Service Delivery in Pakistan: An Innovation under Constraints

Local Government Ordinance, 2001 aimed to create a service-orientated local government by devolving many public services from the provincial to local levels. However, in many cases, local governments either did not have the capacity to manage them or the services extended across different geographic jurisdictions. The new system also restructured the three sub-national levels but without any vertical hierarchical linkages between them, and asked them to coordinate public service provision between them. This article suggests different remedies, including developing vertical administrative linkages and the reconstitution of Zila Mushawarat Committee to undertake coordination functions at intra-district level.     

Beyond Paternalism Towards Social Capital: Local Governance Reform in Portugal

An urge to reform local government in Portugal requires a sensitive approach to the role of social capital and, particularly, to the consequences of local governance arrangements in its formation. This research agenda, greatly influenced by the identification of positive externalities of social capital, has generated several claims regarding the need for proactive and objective top-down initiatives. Though assuming that institutions and public policies can have positive effects on social capital building, this article tries to contribute to the debate, focusing on the challenges met by local administration reform, arguing that it requires a four-fold approach: the identification of local government functions and the role of the State; a close look at institutional design and citizen engagement mechanisms; correct tools for allowing civil society reinforcement and social capital building; and recognizing political leadership as a fundamental aspect of a governance arrangement.     

The Effect of New Legislation on the Disclosure of Performance Indicators: The Case of Spanish Local Governments

This article analyzes the effect of new accounting legislation on the disclosure of performance indicators in the financial statements of Spanish local governments. Based on agency and institutional theories, the article also assesses whether the disclosure of performance indicators is used to make the monitoring of local government performance easier for stakeholders or merely to project an image of good management. The results show that the enactment of new legislation has only led to a partial implementation, most local governments disclosing financial and budgetary indicators but very few providing indicators related to the performance of public services. The institutional theory (symbolic value) seems to be the rationale that best explains this pattern of disclosure.     

The Mediating role of Job Satisfaction in the Relationship between Organizational Justice and Employee Outcomes

Grounded in Social Exchange Theory and Equity Theory, this study examined the mediating role of job satisfaction on the relationships between organizational justice and employee’s outcomes. The study applied PLS-SEM to analyze data obtained from 142 employees. The results show significant relationships exist between organizational justice dimensions and job satisfaction and between job satisfaction and employee’s outcomes. Furthermore, the study found the mediating effect of job satisfaction on the hypothesized relationships. This paper contributes to the existing human resources literature on employees’ outcomes and guides management on how to improved employees’ job satisfaction and employee outcomes.