ABSTRACT
The interaction of local, state and federal frameworks for local government given the latter’s weak constitutional standing means that municipalities must develop a policy response to globalization and competition that reflects the limits and opportunities of these frameworks. The current pattern of higher-level governance includes offloading of responsibilities to local government and broader trends that in practice steer local governments toward austerity policies and further disadvantage financially weaker municipalities. However, the frameworks for local government finance in many states provide significant additional resources that provide opportunities for locally driven policy in economic and community development. These frameworks include both need-based assistance to local governments, such as in Minnesota, and non-need-based revenue-sharing of state income and sales tax streams, such as in Illinois. These frameworks are discussed in the context of the four case study communities analyzed in this book.
