Lessons from Past Consolidation Attempts

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Lessons from Past Consolidation Attempts

• Dr. Alfred Ho
• The Center for Urban Policy
• the Environment
• IUPUI

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Agenda

• Rising importance of consolidation issues
• Factors that influence the success and failure of
  consolidation attempts
• Old school of thought
• New school of thought
• Conclusion A bigger picture for the
  consolidation debates

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Number of Local Governments
Source U.S. Statistical Abstracts, various years.
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Percentage Changes over Time
Source U.S. Statistical Abstracts, various years.
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Success and Failures of Consolidation

• Hundreds of local government consolidation
  attempts since the first in 1805 in New Orleans
• Only 2/3 were successfully implemented after
  numerous attempts
• Less than 15 was passed on the first attempt.
• Since 1990, only 5 city-county consolidations
  succeeded Athens/Clarke County, GA (1990)
  Lafayette Parish/City of Lafayette, LA (1992)
  Augusta/Richmond County, GA (1995) Wyandotte
  County/Kansas City, KS (1997) Louisville/Jefferso
  n County, KY (1999).

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References

• Scholarly work Rosenbaum and Kammerer in the
  1970s, Feiock and Carr in the 1990s, etc.
• A recent publication Suzanne Leland and Kurt
  Thurmaier, eds. Case Studies of City-County
  Consolidation Reshaping the Local Government
  Landscape. M. E. Sharpe.
• 13 case studies of successes and failures

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Old School of Thought

• Crisis climate ? demand for government response
• Inappropriate or ineffective response ? power
  deflation
• Accelerator event

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New School of Thought

• The above factors may contribute to the success
  of city-county consolidation, but they are not
  determining or necessary factors.
• Consolidations can succeed without them.

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Lessons Learned from Consolidation Case Studies

• Efficiency and economy is not the strongest
  argument.
• It is difficult to prove.
• It is difficult to promise future tax savings.
• Voters dont buy in easily.
• There are many other alternatives to achieve
  cost-efficiency in services.
• Lowering your tax but cutting your service is
  not a sell.

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Lessons Learned from Consolidation Case Studies

• Long-term economic vitality and growth is the key
• There may not be an economic crisis.
• But if there are enough perceived concerns
  about the economic future ? voters react.
• Key Build a long-term economic vision ? then
  convince the voters why consolidation is needed
  for that.
• Efficient and responsive services are also
  important

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Lessons Learned from Consolidation Case Studies

• Support of community groups
• Clear support from the business community and
  civic leaders is necessary
• The media plays an important role
• Avoid hurting minority interests
• Assurance for public employees
• Use the economic vision to consolidate support
• Make it a non-partisan issue

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Lessons Learned from Consolidation Case Studies

• Avoid the poison pills
• Changing the sheriff from an elected to an
  appointed position or reducing the sheriffs
  duties without the sheriffs consent
• Hurting the future status of minority
  representation
• Mandatory inclusion of minor municipalities and
  unincorporated areas into the unified government

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Lessons Learned from Consolidation Case Studies

• Good practices
• Creation of a strong countywide executive to
  implement the economic development vision
• Honest, sincere, and simple message.

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Lessons Learned from Consolidation Case Studies

• Roles of the state legislature
• Removal of road blocks special legislation as
  local bills
• How the process is written in laws also matters.

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Conclusion

• Consolidation of local governments is not an
  effective means to address fiscal disparities or
  redistributive needs between cities and suburbs.
  
• There is a clear need to think regionally
• But intergovernmental financial instruments and
  state policy actions are more likely to succeed.

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Conclusion

• Need a Big Picture for Consolidation
• Challenge politicians and voters to think beyond
  their immediate self-interests
• Consolidation is only a policy instrument to some
  larger end-goals e.g., sustainability of
  economic vitality, security, etc.

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Economic Competitiveness in the 21st Century
Low taxes
Quality of physical infrastructure
Quality of public services, and quality
of amenities
Regulatory environment and friendliness to
businesses investors
Quality of workforce / human capital
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• Dr. Alfred Ho
• Center for Urban Policy the Environment
• IUPUI
• 342 North Senate Avenue
• Indianapolis, IN 46204
• 317 261-3000
• Email altho_at_iupui.edu