Source: Pew Charitable Trusts, July 2013
From the summary:
As cities confront financial challenges, states weigh whether to help them pull through…What role, if any, should states play in helping cities, towns, and counties recover from serious financial trouble, what officials generically call “intervention?”
The Pew Charitable Trusts conducted a study examining the range of state involvement in local government finances that drew on current literature, statutes, a survey of state officials, and interviews with government finance analysts.
“The State Role in Local Government Financial Distress,” examines various intervention practices, identifies challenges, and elaborates on three key policy guidelines.
The analysis and state profiles can help inform state decision making about whether, when, and how to assist municipalities facing fiscal stress, the likely outcomes of various approaches, and the implications for cities, counties, states, and taxpayers….