How Does Local Government Amalgamation Affect Spending? Evidence from Louisville, Kentucky

While local government consolidation (amalgamation) has a long history among U.S. cities and counties, few studies have provided a rigorous analysis of the impact of consolidation on spending. This article addresses this issue through analysis of the 2003 consolidation of Louisville and Jefferson Co...

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Bibliographic Details
Published in:Public finance and management 2013-06, Vol.13 (2), p.80-98
Main Authors: Faulk, Dagney, Schaal, Pamela, Taylor, Charles D.
Format: Article
Language:English
Subjects:
Case studies
Cities
Consolidation
Cost control
Cost reduction
Economies of scale
Efficiency
Employees
Employment
Expenditures
Government spending
Government spending policy
Literature reviews
Local finance
Local government
Per capita
Public safety
Referendums
Studies
Wages & salaries
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Summary:While local government consolidation (amalgamation) has a long history among U.S. cities and counties, few studies have provided a rigorous analysis of the impact of consolidation on spending. This article addresses this issue through analysis of the 2003 consolidation of Louisville and Jefferson County, Kentucky, USA. We use financial data on the level and share of spending by function before and after the consolidation to examine changes in inflation adjusted spending. Total spending was variable after consolidation but generally higher than in the preconsolidation period. Per capita expenditures tended to be flatter. Several spending categories (general government and administration, inspections and permits, culture and recreation) increased around the time of the consolidation and then returned to the preconsolidation spending levels. Solid waste expenditures were relatively consistent over the entire period. Spending on public safety and public works increased and remained higher after consolidation. There were changes in spending priorities with public safety and public works experiencing substantial increases and the share of spending on general administration decreasing immediately following consolidation.
ISSN:1523-9721
1523-9721
DOI:10.1177/152397211301300203