The Jobs Are Back, but Where? Implications for How Best to Pay for Local Government Services

Abstract

Decentralization and economic restructuring challenged local governments before the recession. Warned that property tax receipts would also recede as real estate markets collapsed and unemployment levels soared, many wondered if new levels of fiscal stress would result. With declining state aid, central cities were advised to prepare for cutbacks. Our research illustrates jobs are where they were before the financial crisis. Fears that central cities were about to experience regional job shifts with adverse effects on property taxes can subside. There is however other alarming issues that need attention, given reduced intergovernmental transfers.