Deller uwex county leadership conference

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Deller uwex county leadership conference

  1. 1. The Fiscal Conditions of Wisconsin Local Government<br />Steven Deller<br />University of Wisconsin-Madison/Extension<br />Craig Maher<br />University of Wisconsin-Oshkosh<br />John Kovari<br />University of Wisconsin-Milwaukee<br />
  2. 2. The Fiscal Conditions of Wisconsin Local Government<br />"Fiscal stress,“….results from failure to align revenues and expenditures…Shelley (1982)<br />“…fiscal stress as occurring when local government revenues fall without a compensating decrease in the demand for local government services; when citizens increase their demand for local government services and local revenues do not or can not increase; or when a higher level of government ….forces the lower level to increase services without providing the necessary funding for the increased service responsibility.” Chapman (1998)<br />
  3. 3. The Fiscal Conditions of Wisconsin Local Government<br />"Fiscal stress," as either “budgetary fiscal stress” or “citizen fiscal stress.” Budgetary stress occurs when a local government cannot balance its annual budget, with the greater the current account deficit, the greater the fiscal stress. Citizen fiscal stress occurs when residents face an increased tax burden for an average level of locally provided services as the average of the service levels<br />change for other jurisdictions) or as their level and quality of services falls for an average tax burden. Bradbury (1982)<br />“Financial condition” — an organization’s ability to maintain existing service levels, withstand economic disruption, and meet the demands of growth and decline — Maher and Nollenberger (2009)<br />
  4. 4. The Fiscal Conditions of Wisconsin Local Government<br />Chapman (1999)…. “There is no definitive definition of local fiscal stress….” <br />But there are two common themes in most definitions:<br />The structural cause of fiscal stress relates to the built-in set of rules that the jurisdiction has enacted. (e.g., property tax limits)<br />The cyclical cause of fiscal stress relates to the affect of the business cycle on the jurisdiction’s budget. (e.g., the current “Great Recession”)<br />
  5. 5. The Fiscal Conditions of Wisconsin Local Government<br />Two sets of analysis to share with you today……<br />A set of survey results…..survey of Wisconsin county, city and village administrators completed August 6, 2010<br />Secondary data analysis using Wisconsin county audited<br /> data (detailed GREAT data)<br />How Stressed are Wisconsin Cities and Villages?<br />http://www.aae.wisc.edu/pubs/sps/pdf/stpap557.pdf<br />The Fiscal Health of Wisconsin Counties: An Analysis of Primary and Secondary Data<br />http://www.aae.wisc.edu/pubs/sps/pdf/stpap552.pdf<br />
  6. 6. County Conditions August 2010 (%)<br />Zero responses<br />
  7. 7. Cities and Villages Conditions August 2010 (%)<br />
  8. 8. Cities and Villages Current Conditions (%)<br />
  9. 9. Cities and Villages Future Conditions (%)<br />
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  20. 20. Figure 25. Strategy Usage and Satisfaction<br />
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  28. 28. Notice: “Elimination of Services” was not selected by even one respondent….<br />
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  37. 37. Annual 1998 to 2008<br />
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  40. 40. Can we create a scalar index of fiscal health?<br />Two approaches:<br />Simply add the three (currently three) measures together…..<br />Use statistical methods to aggregate…..<br />Principal Components:<br />
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  43. 43. Index based on statistical analysis, listed alphabetically.<br />
  44. 44. Index based on statistical analysis, listed “worse” to “best”.<br />
  45. 45. The Fiscal Conditions of Wisconsin Local Government<br /><ul><li>Is “fiscal stress” or “fiscal condition” in the eye of the beholder?
  46. 46. Does the primary data (survey) match and/or complement the secondary data (audited)?
  47. 47. Stress levels for cities/villages not a “bad” as one might expect.
  48. 48. Stress levels for counties appear to be much higher.
  49. 49. Elimination of programs by counties not held in high regard.
  50. 50. Program revenue may become expected.
  51. 51. Outside grants encouraged.</li></li></ul><li>

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