Barbara Coyle McCabe

Nested Levels of Institutions: State Rules and City Property Taxes

The new institutionalism concentrates on the nature and effects of rules, and intergovernmental relations on the levels of government. This article integrates these foci to present a model of nested institutions and levels of government, focusing on constitutional and substantive rules of governance in states and municipalities. The authors contend that cities’ constitutional rules (specifically their governance arrangements) shape local actors’ incentives and influence their implementation of state mandates. They argue further that the mere presence—not the actual evocation—of these rules casts a shadow that defines the actors’ decision space and that broad distinctions among laws have profound implications for the actors’ choices. They support this explanation by empirically testing propositions derived from the framework regarding property tax dependence in large cities between 1975 and 1995.

Political Conflict, Fiscal Stress, and Administrative Turnover in American Cities

is often citedas a coveted feature of the civilservice, top-level administratorsat all levels of government usually cannot ex-pect to stay very long in any particular po-sition. Sometimes top administrators suffera falling out with elected officials and may bedismissed (or at least fail to gain reappoint-ment) for an additional term. In other cases,high-level executives may seek out greenerpastures, often with another government thatoffers higher salaries , better working condi-tions, or perhaps more satisfying work. Thistrend has been especially striking for high-ranking city administrators, including citymanagers. In response to this trend, severalrecent empirical analyses have examined thefactors that account for turnover of localgovernment managers (DeSantis and Renner1993; Renner 1990; DeHoog and Whitaker1990; Whitaker and DeHoog 1991; Feiockand Stream 1998).Much of this research suggests that tenureand turnover patterns of local governmentadministrators are affected by “push” and“pull” factors (see, e.g., DeHoog and Whit-

Governance lessons: The case of charter schools

Charter schools are one of the newest, most frequent, and controversial approaches to introducing parental choice and competition in educational systems. The policy questions raised by charter schools involve not only organizational and management concerns but also key issues of governance. This article examines how the theories, arguments, and findings of earlier studies on the use of other market mechanisms in local governance may inform the current debate about charter schools. By highlighting the presuppositions and results of the local government reform experience, the authors conclude that the use of market mechanisms like charter schools should be approached with caution.

Turnover, Transaction Costs, and Time Horizons An Examination of Municipal Debt Financing

This article explores the consequences that local government institutions and turnover among local government officials have for local borrowing. We outline how turnover affects choices in policy arenas involving public and private sector actors, long-term obligations, or future commitments. Turnover creates political uncertainty that alters the time horizons of local leaders as well as the transaction costs involved in the floating of bond issues. Empirical analysis of city borrowing patterns in the late 1980s provides evidence that turnover of council members and managers in council—manager cities increases municipal debt burdens. However, turnover of chief administrative officers in mayor—council cities is associated with less city borrowing.

Diversity by the Numbers : Changes in State and Local Government Workforces 1980-1995

The tools used to diversify workforces in state and local governments have come under attack and, in at least one state, have been rescinded by voter initiative. The current backlash against these policies begs the question of whether diversification has occurred, and, if so, how the workforce has changed. In this study, we examine demographic changes in the composition of state and local bureaucracies from 1980 to 1995, looking specifically at the share of representation of both women and men as well as of African Americans and whites. We find significant gains have been made by a combination of white and, especially, black women. Overall, as we enter the next decade, we find a state and local government workforce that is moving towards a more equal gender split.

State institutions and city property taxes: revisiting the effects of the tax revolt

Cities’ reliance on property taxes has declined since the 1970s. This shift has been attributed to state rules enacted in the wake of the tax revolt and intended to curb property taxes. The extent to which state limits on property taxes have affected their cities’ revenues is unclear. This study examines competing explanations for the change in city property tax reliance among states. Pooled cross-sectional time series analysis is used to assess how much state limits or other factors account for changes in property tax reliance over time. The results of this analysis challenge state limitations’ long-term effects.

Direct Democracy Provisions and Local Government Fiscal Choices

To what extent do local revenue decisions depend on the opportunities and constraints created by provisions for direct democracy in local charters? We treat local government charters as a constitutional contract to identify the potential consequences for local government revenue decisions that arise from provisions for direct democracy. This framework bridges competing models and empirically tests propositions linking local revenues in large cities between 1981 and 2004 to the incentive structure resulting from city charter provisions for initiative, referendum, and recall. We find that initiative provisions stimulate demands for public goods leading to greater revenues but that referendum and recall provisions constrain revenue growth.

Fun with Economics: Simulating Theory to Stimulate Learning

Abstract Economic principles are key elements of the public administration curriculum. However, many students do not expect to like economics. They often believe it is unconnected to real issues of concern to them, and they find its standard apparatus difficult and overly abstract. Using simulation techniques that activate learning fits with some learning theory and can help make economic principles seem more realistic and intuitive. This paper describes four active learning exercises the authors have used successfully in MPA classes. We hope this paper may result in widespread sharing of such techniques so that the teaching and learning of economics in public administration programs may become more fun and effective.

THE CHICKEN OR THE EGG: A RECENT HISTORY OF PUBLIC OPINION AND TAX REFORM IN FLORIDA

Public dislike of taxes led to tax revolt and tax reform. Despite the connection between tax attitudes and tax policy, relatively little is known about public attitudes toward taxes over time, and how public opinion either shapes or is shaped by changes in tax policy. We examine the link between opinion and changes in tax policy in Florida, where the public’s view of sales and property taxes was surveyed consistently from 1979-1997, a time when both taxes changed significantly. This combination of tax reform and survey data allows us to observe the pattern of public opinion before, during, and after changes in tax policy, and to draw inferences about whether public opinion leads or lags state action, while examining common explanations for individual differences in opinion. Among other things, our results indicate that the portrait of an anti-tax populace is overdrawn and that the pattern of opinion differs for each tax.