Assessing the Effects of Municipal Term Limits on Fiscal Policy in U.S. Cities

Abstract

The arguments for and against term limits have been the subject of debate since the mid-1990s. Proponents claim term limits bring new energy and ideas to government, while opponents argue they shift power to special interests and the bureaucracy. Analyses of the true effects of term limits have been focused on their implementation at the state level. This article examines the effects of term limits on taxation, city employment, and spending on other public policies at the municipal level. Using data from the U.S. Census Bureau and pooled cross-sectional time series models, the authors find that the presence of term limits has only a modest effect on economic and distributive public policies in U.S. cities as a city’s economic milieu has a greater effect on taxation and policy expenditures.