PUBLIC MANAGEMENT OF SELECTED MUNICIPALITIES SUFFERING LOSS OR DECLINE OF MAJOR TAXPAYING INDUSTRIES: THREE ESSAYS IN CUTBACK MANAGEMENT

In three separate but related essays, this dissertation considers the problem of municipal budgeting after the loss of a major industrial taxpayer. The first essay develops a conceptual model for a budget process that utilizes the allocational conflict inherent in a cutback budgeting situation. Conflict is overtly managed in a dialectical debate process which leads to a creative synthesis solution for retrenchment. The second essay describes case studies of the management and budgeting processes of five Ohio cities following the loss of a major industrial employer and taxpayer. The case findings support the proposition that the quality of management does influence the overall well being of cities in financial stress and can make the difference between long term fiscal stability and defaults or financial emergencies. The third essay develops a goal programming model of the municipal cutback budgeting process which can be used as a research methodology as well as a managerial tool to support cutback decisions. Conclusions are drawn about the importance of good management in overcoming the effects of municipal fiscal stress and maintaining long term financial stability.