How school district and municipality finances responded to the great recession Public

http://ir.library.oregonstate.edu/concern/honors_college_theses/rj4306504

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  • The 2008 financial crisis started a domino effect that crippled much of the United States economy. Most associate this crisis with large scale mortgage failure and an increase in unemployment. These were two of the main causes and effects of the crisis. However, society as a whole was also impacted. This paper examines one of those societal impacts – the financial troubles in municipalities and school districts. First, I review the current literature on the impacts that the Great Recession had on state revenues, local municipality and school district financial decisions, and community welfare. Then I employ an empirical analysis of data gathered by Conlin and Thompson (2014) to analyze the revenue and expenditure trends of Ohio municipalities from 1999 to 2011. The data is broken into quintiles based on average property wealth within each municipality. By analyzing the trends in each separate quintile, this study finds that the wealthiest quintile experienced the largest total wealth impacts on revenue and expenditures in the aftermath of the recession. Key Words: Great Recession, school districts, municipalities, Ohio, revenues, expenditures
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