Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback97 pages $30.00 $24.00 20% Web Discount

In each of the last several years, the City of Saint Paul, Minnesota, has faced a budget crisis. This Note answers the question: As inflation abates and the economy moves out of the recession, will the annual shortfalls disappear? Or are they indicative of a deeper problem unrelated to cyclical economic conditions? To answer this question, the authors estimate the revenue and expenditure levels the city can expect in each of the five years 1984-1988 if there are no basic changes in the structure of city costs or revenues. In seven of the nine scenarios examined, the city can expect to face growing annual budget deficits. In the most likely case, with moderate inflation and modest growth in intergovernmental aid, the annual deficit will reach $8 million in 1988. The projections reveal that the city's problems are structural — costs grow with inflation but revenues frequently do not. To avoid continuing fiscal problems, Saint Paul must restructure its finances.

This report is part of the RAND Corporation Note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit www.rand.org/about/principles.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.