Responses to local governmental fiscal distress: An analysis of municipal utilization of bankruptcy, asset monetization and debt financin

The overarching goal of this exploratory research is to better understand fiscal distress and three particular responses utilized by local governments to improve fiscal health. This dissertation utilizes a convergent mixed method design to analyze qualitative and quantitative data in order to investigate the primary research question concerning the impact of local government responses to fiscal distress on fiscal condition.;The specific research question guiding this exploratory study is: how do the methods utilized by particular municipalities to address fiscal distress, including bankruptcy, asset monetization and the issuance of debt, impact fiscal health. To answer the principal research question, six municipalities are selected for case study research in order to review and consider the circumstances surrounding such responses and the results thereof, and the relevant fiscal indicators and conditions that contribute to fiscal distress in each instance.;To carry out the case studies, first, public documents are collected to provide substance in regards to each local government's fiscal context. Second, municipal officials are surveyed to offer insight into the qualitative conditions that influence fiscal distress. In addition, quantitative data is collected from the audited financial statements of each case in order to operationalize fiscal distress and provide meaningful indicators for the measurement thereof.;By examining the context, circumstances and criteria of each case, this study offers an understanding of the variables and indicators that are present during times of local government fiscal distress, which has resulted in the adoption of one of the three strategies undertaken by the local governments studied in their attempts to eliminate such fiscal distress. This study acknowledges that one-size-fits-all measures of local government financial condition do not exist due to the contextual diversity between local governments; however, quantitative models can offer the identification of more similarities than differences.;Despite the lack of normative standards and empirical evidence, and perceived ambiguities regarding the efficacy of various approaches in existing literature, context-specific models can be developed to routinely monitor, assess, and identify potential issues early enough to avoid and mitigate fiscal vulnerabilities. Maintaining a healthier fiscal position prior to utilizing any response, showing initiative to improve fiscal condition and developing and following fiscal policies allow for fewer missteps or oversights with finances.;The findings indicate that many municipal administrators may not feel that they have immediate control of their finances, but also do not necessarily feel constrained by other levels of government, external officials or the public. The contextual factors discovered are more internal and managerial in nature rather than economic. However, political and economic variable category factors may seem more prevalent to administrators in more dire fiscal situations.;There is less variation in significant indicators before and after a successful response is utilized as opposed to an unsuccessful one. Successful cases may have experienced more specific problems that affected their fiscal position, which their response addressed. Alternatively, it is unclear whether the responses had any impact on significant indicators in unsuccessful cases. Unsuccessful cases may have had wider systemic financial issues that the response did not address.;Among and between bankruptcy, asset monetization and debt financing cases, the significant indicators appear to be consistent as to respective indicators and indicator categories, but do not appear to behave similarly across local governments before or after each respective case response is utilized. Accordingly, by response utilized, each case experienced both similar and unique fiscal distress indicators, but the differences in the unique indicators do not appear to be remarkable.;Finally, this research finds that many types of responses or lack thereof can be compared, contrasted and studied through similar indicators. This study recognizes that developing such a framework requires intimate contextual and domain knowledge, as well as awareness of the multi-causal relationships that exist between a jurisdiction's external environment, its internal finances, and its management practices.