Over the past 24 months all communities have experienced fiscal challenges in one way or another. Unfortunately, the fiscal challenges of local units of government, businesses, banking, housing, non-profits, churches, etc. are symptomatic of much larger challenges. Some of the larger challenges playing out in our local communities are declining personal income, increasing health care costs, high unemployment, global business competition, demographical population shifts (including aging and ethnicity), federal and state finances, and a shrinking workforce.
While much of the conversation and concern at the local level revolves around the State’s cutting of Local Government Aid (LGA), it is pretty clear that over the coming years local aid from the State will not be funded as it is even at today’s lowered amount. Reduction, and likely elimination, of local aid from the State will have significant impacts on local units of government. Thereby, conversations on strategies to mitigate LGA is understandable, unfortunately, addressing lost aid will be insufficient to fuel thriving communities.
Two Fiscal Hardship forums were hosted by Region Nine Development Commission. The first forum, held in January 2009, focused on identifying ways to deal with the growing economic woes that are plaguing local communities. The second forum, held in May 2010, provided a more indepth look at local finances. Fiscal Hardship II was an effort to get the region to do three things:
1. help the region collectively see the challenges/opportunities before us
2. provide a simulated experience of the impact of such challenges
3. enact real action starts
The toolbox below is a link to organizations and documents that may be used to help local communities begin this much needed journey of change.
