ABSTRACT
At the end of this chapter you should:
Appreciate the many barriers that local governments (LGs) face in their efforts to implement improved management control systems, and hence to move toward what has been called the New Public Management (N PM) paradigm.
Understand the distinction between bureaucratic control and managerial control.
Recognize that a typical LG provides a heterogeneous mix of programs and services, ranging from street cleaning to social welfare, and that these programs and services can differ in terms of (a) the formality of the relationship to clients, (b) the degree of customization and professional judgment, (c) the nature of demand in relation to supply, (d) the method of service delivery, and (e) the capital-labor mix in service delivery.
Understand how the principles of generational equity and consumer equity influence whether and how much an LG charges for some of its services.
Be able to address the conceptual issues involved in deciding whether a program or service should receive a subsidy from general tax revenue.
