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All over the United States, local governments are faced with federal and state cuts to their budget which have caused tension in their delivery of services and programs. Municipalities are trying many different solutions to help reduce the pressure on their budgets while still meeting the needs of their citizens.
The word fiscal stress is very common among federal, state, and local governments. What does fiscal stress mean to state and local governments? "In terms of a structural definition fiscal stress can be described as constraints put on the local government by its economy (its economic base), its population's structure (determining the extent of service need), and the cost of providing a unit of service." (Diaz and Green, Winter 2001).
State and local governments in America are currently facing a historic fiscal crisis. The National Governors Association says that states face the "most dire fiscal situation (fiscal stress) since World War II" (Cauchon, 2003). The......



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Title: Literature Review
Approximate Word Count: 4413
Approximate Pages: 18 (250 words per double-spaced page)

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