The Great Recession hit state and local budgets hard, but there are signs that a recovery may be underway. Expert Tracy Gordon says the private sector is slowly adding jobs, and state revenues are beginning to creep up. However, there is pent-up demand for state services, and policymakers should use the opportunity to create efficiencies.
In their recent book, “The New Localism,” Bruce Katz and Jeremy Nowak argue that cities and counties will be tested as never before in the coming years. They will need to innovate and reform—to pursue new strategies for growth and finance—in a fiscal environment dominated by rising health-care and pension costs. In these circumstances, the quality of metropolitan governance will matter more than ever.