The “New Normal” for Local Government

Abstract

This article argues that the bursting of the housing bubble, the banking crisis and the resulting great recession of 2008 have altered the landscape for local governments. The authors contend that the economic recession has created a “new normal” for local government finances, employment, and services. This “new normal” perspective holds that the great recession of 2008 represents a break point for local governments, with implications likely to last long after the economy recovers. The authors suggest that the “new normal” for local governments will consist of fewer resources, smaller workforces, and new ways of delivering services.