Sunday, January 25, 2004

Are local government perennially endangered?
The last quarter century has given us the end of the Great Society programs with their emphasis on federal aid to cities; the property tax revolt that clamped down on the ability of municipalities to jack up property taxes whenever they felt the need; the rise of homeowner associations and other forms of privatized local government alternatives; and a tremendous increase in hiring and spending by local governments. With slashed revenue sources and competition from the private sector, local government as a sector grew like crazy anyway. And all this amid predictions of doom and gloom from pundits like me.

Remember that movie Halloween where the monster keeps gets "killed" but every time, no matter what happens to him, a few minutes later he suddenly sits bolt upright while Jamie Lee Curtis is finally calling the police like she should have done about five minutes into the film?

Now, I'll grant you that some municipalities are indeed in sorry shape. There are some inner-ring Chicago suburbs--Harvey, for example--that are in desperate condition. Crime, no tax base, horrible schools, property values through the floor. I don't know what will become of places like that. But it is surprising how many inner ring suburbs have found some way to make it all work. Maybe they find a way to take advantage of their location, architecture, famous former inhabitants, a natural disaster, some part of the natural environment, a lawsuit--there are many ways.

And even if you can't do any of that, if you can just attract new common interest housing, then you can impose major concessions on the developer ("Build us a new high school!"), followed by impact fees and double taxation of the new HOA residents. And then, Bob's your uncle...life is good.


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