Note: I attach an article I wrote for Practical Law about municipal finances. The kind people there have given me permission to share the article in my personal writing, and in exchange I will encourage you to take a look at the resources offered by Practical Law. Their existing content is probably the most useful resource of which I am aware, and they are diligently building new content for the state and local government lawyer. It’s a great tool and I hope you will explore it.

If you are interested in the topic, please refer to the attached article for a much more detailed treatment.

There is an enormous variation among the states on the specific laws applicable to municipal finances, but so far I’ve seen nothing to disabuse me of the notion that cities don’t have much latitude in how they raise, spend, and borrow money. There are probably lots of good reasons to narrow the options available to city government, from low voter turnout in city elections to (arguably) greater incidence of corruption at the city level to the possibility of disruptive urban economic protectionism. But I remain convinced that cities need more local flexibility in fiscal matters. Continue reading →