Municipal Governance and Financial Health: An Analysis of the Institutional Structures of California Cities
type: CreativeWork
description: This dissertation analyzes the relationship between institutional structures of California municipalities and their financial health by examining how variations in framework, form of government, and operational model affect a city’s finances. This study seeks to answer why some cities are more fiscally healthy than others, particularly when facing similar economic challenges. In recent years, much attention has been focused on the financial distress and stability of California cities, especially after bankruptcy filings by cities such as San Bernardino, Stockton, and Vallejo. In response, the State of California established the California High-Risk Local Government Audit Program to allow the California State Auditor to monitor the financial health and stability of cities, with the goal of identifying and addressing fiscal challenges in cities facing insolvency. Annually, the California State Auditor’s Office provides a ranking of all California municipalities based upon an analysis of ten key financial indicators. The rankings are an essential tool for cities to be proactive in managing their local government finances and to promote transparency for local stakeholders in holding their public officials accountable to responsibly managing their public funds. The study’s hypothesis posits that charter cities, council-manager form of government, and cities that contract for public safety services will demonstrate stronger fiscal health compared to their general law, mayor-council, and full-service counterparts. To test these hypotheses, an ordinary least squares regression analysis is conducted to evaluate the relationship between the various institutional structures and a city’s financial performance, based upon data from the California State Auditor’s Office. The findings reveal that the operational structure of a city, especially those cities that contract out public safety services, is a significant determinant of a city’s fiscal health. Cities that contract out pol…
abstract: This dissertation analyzes the relationship between institutional structures of California municipalities and their financial health by examining how variations in framework, form of government, and operational model affect a city’s finances. This study seeks to answer why some cities are more fiscally healthy than others, particularly when facing similar economic challenges. In recent years, much attention has been focused on the financial distress and stability of California cities, especially after bankruptcy filings by cities such as San Bernardino, Stockton, and Vallejo. In response, the State of California established the California High-Risk Local Government Audit Program to allow the California State Auditor to monitor the financial health and stability of cities, with the goal of identifying and addressing fiscal challenges in cities facing insolvency. Annually, the California State Auditor’s Office provides a ranking of all California municipalities based upon an analysis of ten key financial indicators. The rankings are an essential tool for cities to be proactive in managing their local government finances and to promote transparency for local stakeholders in holding their public officials accountable to responsibly managing their public funds. The study’s hypothesis posits that charter cities, council-manager form of government, and cities that contract for public safety services will demonstrate stronger fiscal health compared to their general law, mayor-council, and full-service counterparts. To test these hypotheses, an ordinary least squares regression analysis is conducted to evaluate the relationship between the various institutional structures and a city’s financial performance, based upon data from the California State Auditor’s Office. The findings reveal that the operational structure of a city, especially those cities that contract out public safety services, is a significant determinant of a city’s fiscal health. Cities that contract out pol…
author: Freeland, Christopher J.
keywords: city framework, form of government, instiutional structures, municipal finance, Political Science, Public Policy
date published: 2024-01-01T08:00:00Z
date modified: 2026-07-24T01:41:01Z
provider: Claremont Graduate University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Claremont Graduate University