The Relationships between Public Finance Issues, Financial Management Issues, and Conditions of Fiscal Stress in Small and Rural Governments: The Case of West Virginia

By Dougherty, Michael John; Klase, Kenneth A. et al. | Journal of Public Budgeting, Accounting & Financial Management, December 1, 2000 | Go to article overview

The Relationships between Public Finance Issues, Financial Management Issues, and Conditions of Fiscal Stress in Small and Rural Governments: The Case of West Virginia


Dougherty, Michael John, Klase, Kenneth A., Song, Soo Geun, Journal of Public Budgeting, Accounting & Financial Management


INTRODUCTION

Small and rural communities face severe fiscal constraints. These problems often go unrecognized because of the much greater concern with the continuing urban crisis (Clark et. al., 1986). The nature of needs and problems in small and rural local governments cannot be assumed to be the same as those of larger governmental units, just on a smaller scale (Banovetz and Nolan, 1990). Rural conditions make the administration of rural governments different from urban governments. Their small populations, low population densities, and isolation from urban influences cause differences in the cost, amount, and quality of public services (Reid, 1984). The nature of the evolving devolution of governmental responsibilities and emerging demographic trends have heightened the necessity of examining the financial problems of these small and rural local governments which are a vital part of the American landscape.

A number of factors affect governance in small and rural jurisdictions: geographic isolation, low population density, mobility disadvantages, scarcity of fiscal resources, lack of expertise and human resources, personal familiarity, resistance to innovation, and lack of ancillary services (Honadle, 1983). Rural government capacity is commonly thought to depend on institutions with sufficient authority, adequate financing, and good leadership to insure governmental authority and resources are used wisely (Reid, 1984). These circumstances are frequently lacking and research links the problems of small and rural local governments to the lack of adequate rural management capacity, fiscal stress, and changing intergovernmental roles resulting from devolution under the "New Federalism" (Cigler, 1987). The sparse population of small rural communities poses unique financial problems and difficulties in securing professional staff, but most local problems have their roots in the lack of availability of fiscal resources (Banovetz and Nolan, 1990). Thus problems continue to revolve generally around several central issues: changes in rural demographics, economic problems of rural areas, inadequate financial resources, and inadequate expertise (Brown, 1980).

FISCAL STRESS IN SMALL AND RURAL LOCAL GOVERNMENTS

Population trends in recent years have indicated a reversal in the historical movement of people from rural to urban areas in virtually all areas of the United States. Rural (nonmetropolitan) areas grew faster than urban (metropolitan) areas, and migration from cities exceeded migration to cities in the 1970s (Cigler, 1984). This reversal of population migration patterns has been characterized as a "rural renaissance" or the 11 new ruralism. " In the 1980s, nonmetropolitan areas experienced diminished growth but underwent another upturn in population growth rates by the end of the decade (Johnson and Beale 1994). This population growth in nonmetropolitan continued as many areas in the United States have seen population increases so far in the 1990s.

Obviously, the diversity of small and rural jurisdictions would indicate that these overall trends have not been uniform -- some rural areas have experienced decline while others realized significant growth. Where population growth has occurred, it has had and continues to have dramatic effects on the population and economy of rural and small towns in the United States. Such a shift in population to rural areas cannot occur without creating challenges and intensifying the predicament that rural jurisdictions already face (Brown, 1980; Cigler, 1984). These rural growth trends have implications for the administrative and financial problems of small and rural local governments (Seroka, 1986). Small and rural communities are faced with the prospects of even greater financial requirements to adequately meet local needs and sometimes heightened demands for governmental services created by population growth. Meanwhile, legal restrictions and economic conditions often constrain the ability of these communities to respond. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

The Relationships between Public Finance Issues, Financial Management Issues, and Conditions of Fiscal Stress in Small and Rural Governments: The Case of West Virginia
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    New feature

    It is estimated that 1 in 10 people have dyslexia, and in an effort to make Questia easier to use for those people, we have added a new choice of font to the Reader. That font is called OpenDyslexic, and has been designed to help with some of the symptoms of dyslexia. For more information on this font, please visit OpenDyslexic.org.

    To use OpenDyslexic, choose it from the Typeface list in Font settings.

    OK, got it!

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.