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Results from a national survey of local government finance directors suggest that five years after implementation, the post-Statement 34 accrual-based accounting model has done little to stimulate the development of operating cost data (such as activity-based costing) or performance measurement, and provides decision makers with little information to improve short- or long-term financial planning,. While younger respondents attach greater value-added to the New Reporting Model (NRM), overall support for the hybrid approach (traditional fund reporting plus entitywide full accrual reporting) is limited. Consistent with the "Theory of Planned Behavior" applied in prior accounting research; traditional sociological drivers (community size, form of government, and other demographic factors.) do not impact perceptions of the NRM. Findings also suggest "accrual anomie" due to lack of experience with this basis of accounting.

Certain of GASB Statement 34’s requirements might on their face induce an upgrading of local sector forecasting capacity as well as a reduction of tolerated forecast error. Results from our national survey of local and county finance officers suggest that respondents with graduate degrees who work in offices with forecasting software may respond to GASB 34 implementation in a manner consistent with this expectation. Others are unlikely to view the standard as a cue to enhance their forecast capacity at this early stage of rollout. Our results also suggest that the norm of revenue underforecasting is deep-seated and that survey results understate its magnitude. These results are a baseline; further experience with the GASB 34 may alter practitioner perception of need and lead to deployment of more advanced forecasting methodology and heightened expectations of forecast accuracy.

This article summarizes findings of a survey designed to obtain perceptions of municipal finance officers in Massachusetts regarding stabilization fund management strategies. Responses indicate that stabilization funds have become embedded components of municipal revenue management strategies, that municipalities are reluctant to tap stabilization fund balances, and that chief financial officers perceive these balances to be important to bond ratings. Some finance officers report active use of stabilization funds, generally because their communities either rely on the stabilization fund to finance capital projects or because they are currently vulnerable to revenue emergencies. A small number of communities report that they rely on voters to override statutory property tax levy limits, while maintaining stabilization fund balances above the statewide median.

Recent public sector management reform efforts have focused on the decentralization of managerial discretion and the empowerment of operational managers. To what extent have purchasing functions been decentralized in municipal governments in the wake of these efforts? What are the organizational factors associated with the decentralization of purchasing? On the basis of a national survey of municipal governments in the United States, this research finds that decentralization of the responsibility for purchasing has been limited. The decentralization that has occurred is associated with decentralization of budgeting and personnel systems, an organization=s analytical capacity to employ administrative and analytical tools, and an organization=s commitment to and support of enhanced performance and accountability.

Local governments are often forced to purchase expertise for non-recurring analyses, such as rate setting for water and sewer services, because it is not cost-effective for these governments to maintain such expertise in-house or because independent analyses are preferred by watch-dog agencies or mandated by state statutes. However, like many ostensibly value-neutral analytical studies, these studies inevitably entail policy choices of which elected policy makers may not be aware. External analysts may not be aware of idiosyncratic factors, and they apply boilerplate perspectives that may not be responsive to local preferences. These perspectives limit policy options, although they may appear to be value-neutral. Policy makers must take an active role in these analytical studies in order to ensure that local preferences and specific factors are considered. Citizen committees comprised of residents with the necessary expertise, or experts from local colleges and universities may be able to provide the necessary oversight.

This article describes the implementation of Joint Economic Development Districts between the City of Akron, Ohio and surrounding townships. We examine the capacity of the JEDD structure to make Akron’s boundaries more “elastic” without contentious annexation, explore its capacity to serve as a vehicle for cooperative regional economic development, and assess its utility as mechanism for generating the funds necessary to finance the infrastructure improvements required for economic development. Preliminary indications are that the JEDD mechanism will allow the benefits of economic development to accrue to Akron while it avoids costly and contentious annexations and will generate funds to support economic development, but it does not manifest a cooperative, regional approach to economic development.

The public sector purchasing function continues to face growing pressures to reform current purchasing processes. Yet, little is known about the abilities of purchasing professionals to adapt to this rapidly changing environment. This article identifies the critical job duties and work responsibilities of government purchasing buyers and officers in an attempt to determine if they currently posses the knowledge, skills, and abilities to successfully adapt to increased pressures for reform.

This article presents a study of revenue forecasting in a Florida municipal government. Seven techniques, including the budget officers' judgmental approach, time series models, a deterministic model, and an optimized model, are employed with franchise and utility receipts in the Town of Davie. The authors found that simple time series models outperformed deterministic models and the judgmentally derived forecasts of local officials. Consistent with prior research, findings here suggest that the time series models are not only accurate, but also easy to implement and readily comprehensible by local officials.

This symposium examines issues related to local economic development financing. The symposium introduction paper consists of two sections: (1) a review of the literature related to local economic development in general and to the financing economic development in particular; and (2) a summary of major findings from the four symposium papers addressing such issues as rural bank loans, the tax increment financing program, professionalism in economic development, and regional development through tax sharing.