There are more causes of fiscal distress than remedies. A nascent field is emerging built on the practices utilized to confront fiscal distress. The usual method follows a federal structure in that the state has ultimate responsibility when local governments fail, leaving communities to live in a “new normal” of austere oversight. As more urban areas contend with extended economic downturns, political paralysis, and social apathy in the face of unsustainable governance, there is a need for a strategic approach to the administrative side of fiscal distress management. Although cutbacks, consolidations, and service reductions are the tactical tools of the trade, emergency financial management also requires a guiding strategy that protects the fundamental purpose and character of the local government. This article uses ideas from disaster management and the fiscal crises in Michigan to develop four key elements in a strategic approach to emergency financial management.
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