Citizen distrust of government
There have been various tax revolts in the United States. The perception that the public has no control over government spending has propagated the tax and expenditure movement that has lasted the last three decades. The public directs its frustrations to the government with the local government suffering the wrath more compared to the state and federal government due to the fact that it can be accessed easily. Even though the public gives credit to the local government for providing them with their money’s worth according to opinion polls, there is still a strong dislike for property tax. This has led to local government spending more on economic development initiatives so that they can attract increased commercial and industrial tax payers. “Illinois residents trust their state government to handle their state's problems far less than residents in any other state. Twenty-eight percent of Illinois residents trust their state government a great deal or a fair amount.”(Jones, 2014).
Increased economic uncertainty
There are three main economic events that affect local budgets and they are
· Cyclical shifts in the economy brought about by recession, inflation and expansion
· Shifts in sectors induced by changes in technology and economic development
· Population migration due to changes in technology and employment market
Economic business cycle nationally and regionally, economic growth which is followed by decline, stability in price followed by inflation, shifts in unemployment levels and changes in interest rates are some of the usual affecting the budget of local governments. Property tax base modification, sources of revenue and spending flexibility are some of the ways local governments can diversity so that their budgets withstand these business cycles. Managers should act to counter the cyclical, sectoral and population shifts which are the three main forces that suffocate local government budgets.
The main reason why the state of Illinois does not trust the government is because of the state’s history of political corruption and the 2016 state budget problem that affected many people. A way that this issue can slowly be addressed is by approving the Trust Act making our economy stronger and community safer, of course, this is a work in progress and does not mean we will officially trust our government, but it’s a start.
References
Bland, R. L. (2013). A budgeting guide for local government (3rd ed.).
Jones, J. (2014, April 4). Illinois Residents Least Trusting of Their State Government | Gallup. Retrieved from http://www.gallup.com/poll/168251/illinois-residents-least-trusting-state-government.aspx