Panel Paper: Service Shedding in Local Governments: How Often Do Cities Terminate Services? Why Do They Do It?

Friday, November 7, 2014 : 9:10 AM
Navajo (Convention Center)

*Names in bold indicate Presenter

Meeyoung Lamothe and Scott Lamothe, University of Oklahoma
Using four consecutive ICMA alternative service delivery arrangement surveys, this study explores how commonly local governments shed services and the determinants of this action.  Our findings indicate that service shedding is fairly common.  Nearly 70 percent of the jurisdictions in our analysis undergo at least one termination over the course of the study and at the service level, approximately nine percent of services at risk for shedding suffer this fate.  With regards to why jurisdictions shed services, we find that prior delivery mode is very influential.  Specifically, services that were contracted out in the previous time period are much more likely to be dropped than are those that were produced in-house.  We also find that the behavior of “peer” jurisdictions matters – if your peers tend to provide a service, you tend to continue to do so as well.  We find little support for the idea that either budget stress or ideology is impactful in the termination decision.