|
|
|
CIAO DATE: 10/5/2006
Annexation and the Fiscal Fate of Cities
David Rusk
August 2006
Abstract
Politicians, think tank policy analysts, and academics constantly argue why some cities succeed and others fail. One such view was succinctly summarized in 1995 by then- Speaker of the House Newt Gingrich, speaking specifically of Atlanta: “The city’s got too many problems. The solution for Atlanta’s problems is for city government to get its own house in order. Eliminate union featherbedding. Cut the bureaucracy. Slash high taxes that are driving families and jobs out of Atlanta. Become a lean, well-run, low-cost government like its suburbs. Then Atlanta can compete on even terms.
”1 Gingrich is not alone is espousing such policy prescriptions. However, thorough analyses show that cities’ relative fiscal health is not simply determined by virtue or sin at City Hall. Rather, it is determined by their demographic profiles and economic bases within the context of sprawling metropolitan development patterns.
