Local Financial Emergencies in the USA
Local financial emergencies are events that affect the economic viability and long-term financial capability of a local government as a going concern because of deteriorating resources, inability to meet operational needs, and failure to repay loans and meet community needs over a period. Financial and economic indicators of the existence of financial emergencies include revenue-expenditure imbalances, expenditure violations, property tax delinquencies, declining assessed property values, increased liabilities, and failure to honor debt obligations when they are due (ACIR 1973; Coe 2008; Crosby and Robbins 2013; Kloha et al. 2005; Beckett-Camarata 2004; Beckett-Camarata and Grizzle 2014; Scorsone and Padovani 2014).
With increasing deterioration in fiscal health, US local governments may go through periods of fiscal watch, fiscal stress, and a declaration of the...
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