Monday, November 25, 2013

Sound familiar?

The trials and tribulations Trenton has been through for the past several years often make us feel like we are the only city to experience so many severe problems. 

Although extreme, many of the city’s financial problems and the actions of Trenton officials fit two patterns seen in many small and very poor local governments. First, events in Trenton demonstrate a perfect storm of structural insolvency, low internal capacity, poor political leadership, and bad financial choices that often occur in such governments. The city’s structural insolvency, which is extreme by any standards, developed over many years of decline in its economic base. This trend is difficult for any city government to change as its causes and solutions are often beyond the direct control of its officials, and maintaining financial condition in this situation through fiscal policies and practices implemented by that government alone can be close to impossible. However, the story of Trenton clearly demonstrates how officials’ policies and practices can exacerbate current structural deficits and lead to more serious financial trouble.

To some extent, the city’s bad financial choices and poor leadership can be attributed to their
governance system, which is more inherently political than many other types of systems found in
suburban governments. Its history of machine-style politics based on an aldermanic structure with separate wards promotes a very political approach to policy making that is most often associated with older and larger central cities.

Sometimes, though, we can take comfort in knowing "we are not alone." Yesterday, we wrote about the HBO series "The Wire" and its relevance to not only Baltimore, Maryland, where the show was set and filmed, but to Trenton and other post-industrial cities.

Another, not flattering, comparison that comes to mind is with the hard-luck city of East St. Louis, Illinois. East St. Louis has been experiencing severe financial distress and drastic population loss for decades. It is just now about to emerge from under a quarter of a century of oversight from the State of Illinois. But, truth be told, East St. Louis' fiscal issues can be traced back over more than a century.

In 2008, Rebecca Hendrick wrote a five page paper on "The Story of the City of East St. Louis." She quickly and succinctly sums up the fiscal follies and failures of the city.

She ends the piece this way:

“Although extreme, many of the city’s financial problems and the actions of East St. Louis officials fit two patterns seen in many small and very poor local governments. First, events in East St. Louis demonstrate a perfect storm of structural insolvency, low internal capacity, poor political leadership, and bad financial choices that often occur in such governments. The city’s structural insolvency, which is extreme by any standards, developed over many years of decline in its economic base. This trend is difficult for any city government to change as its causes and solutions are often beyond the direct control of its officials, and maintaining financial condition in this situation through fiscal policies and practices implemented by that government alone can be close to impossible. However, the story of East St. Louis clearly demonstrates how officials’ policies and practices can exacerbate current structural deficits and lead to more serious financial trouble.”
 
“To some extent, the city’s bad financial choices and poor leadership can be attributed to their
governance system, which is more inherently political than many other types of systems found in
suburban governments. Although the city has a council-manager form statutorily, its history of machine-style politics based on an aldermanic structure with separate wards promotes a very political approach to policy making that most often associated with older and larger central cities (Theising, 2003).”

Sound familiar?

It should.

The italicized paragraphs above are the same passage with "Trenton" substituted for "East St. Louis." In addition, the opening clause "Although the city has a council-manager form statutorily" was removed from the "Trenton" version because it was not correct.

Everything else that Ms. Hendrick wrote about East St. Louis could just as accurately describe Trenton.

We're not the only city that is in trouble. Let's look around and see what we can learn from our mistakes as well as those of other towns and cities.

What we have been doing has not been working too well, maybe we need to start thinking about making some changes.

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