A Financial Management for
Local Governments

Rural Information Center Publication Series,
No. 67, Revised Edition

RIC Icon


Compiled by Robert Salmon

Rural Information Center
National Agricultural Library, Room 304
Beltsville, MD  20705-2351
1-800-633-7701
301-504-5547
ric@nal.usda.gov

MAY 1999 *** ISSN: 1056-9685
Introduction

Bibliography

Financial Management

Financing

Current Trends in Finance and Funding.

Sources/Methods of Financing

Budgeting and Planning

Financing Transportation and Infrastructure

Approaches to Management

Leadership

Strategic Planning

Total Quality Management (TQM)

Case Studies

Organizations

Document Delivery Services for Individuals


This publication contains material that is considered accurate, readable and available. The opinions
expressed in this publication do not necessarily reflect the views of the United States Department of
Agriculture.  Inclusion of publications and software databases in this publication does not imply product endorsement.

Introduction


This purpose of this guide is to give local government officials quick access to ideas and
suggestions on financial management. In today's economy, local governments must provide greater
numbers of services with smaller budgets. Rural areas also are faced with low population densities and reliance on part-time or volunteer staff.

Effective utilization of human resources is an excellent remedy for many of these problems. By
learning and implementing sound management methods, governments with vision can convert
weaknesses into strengths, thus creating viable rural communities.

National Agricultural Library (NAL) call numbers (book numbers) are provided for items that are owned by NAL and may be borrowed from the library through interlibrary loan. For this service, refer to the Document Delivery Services for Individuals (borrowing policy) in this document for information on obtaining those documents. For other documents we suggest first checking with your local public or college library.


Bibliography


Many suggest that the primary issue facing local governments throughout the United States is
economic development. A good starting point for economic development is having a clear picture of
government's financial strengths and weaknesses.


Financial Management

1
"Analyzing Rural Local Governments' Financial Condition: An Exploratory Application of Three Tools." Beth Walter Honadle and Mary Lloyd-Jones. Public Budgeting & Finance, vol. 18, no. 2, summer 1998: 69-86.

Extension staff compare three tools for assessing small local government "financial condition."

2
"Cutbacks in the Country: Retrenchment in Rural Villages, Townships, and Counties." Susan A. MacManus and William J. Pammer Jr. Public Administration Quarterly, vol. 14, fall 1990: 302-323.

This study provides a look at the reaction of urban and rural governments to federal budgetary cutbacks over the prior ten to fifteen years. By using surveys and statistical analysis, the authors conclude that each type of government reacts differently to fiscal constraints. Local governments are more apt to retrench by cutting resources, while urban governments focus on expanding the revenue base.

3
Financial Market Intervention as a Rural Development Strategy. ERS Staff Report No.
AGES 9070. Washington, DC: Agriculture and Rural Economy Division, Economic Research
Service, U.S. Department of Agriculture, December 1990. 93 p. NAL Call No.:
aHN90.C6F5.

The Federal Government is involved in rural financial markets in a number of ways to ensure
the safety and soundness of the financial services delivery system. They also further a variety of
policy objectives that are related to rural financial markets. This report is concerned with the
usefulness of Federal intervention in rural financial markets as a mechanism for fostering rural
development. (This publication may be obtained by calling (800) 999-6779. Request by title and
report number.)

4
Guide to Managing Financial Resources. Solid Waste Association of North America (SWANA) and NADO Research Foundation (NADORF). Silver Spring, MD: SWANA; Washington, DC: NADORF, 1996. 46 p. NAL Call No.: HD4483.G852 1996.

Although this publication is on the topic of solid waste, it is a good overview for any local official
for "service" finances -- such as solid waste disposal. The information is basic and
understandable for newcomers in the local finance arena. It reviews factors that affect cost, basic
concepts of financial accounting, budgeting, and actually financing solid waste systems.

5
Long-Term Financial Planning: Creative Strategies for Local Government. Jeffrey I.
Chapman, ed. Creative Strategies for Practical Management Series. Washington, DC:
International City Management Association, 1987.  188 p.

This book provides a foundation for long-term financial management, taking a look at what local
governments can expect in the financial future; describing successful planning, budgeting, and
forecasting techniques; and looking at a few potential revenue sources that are often
overlooked. 

6
Managing Small Cities and Counties: A Practical Guide. James M. Banovetz, Drew A. Dolan, John W. Swain, eds. Washington, DC: International City/County Management Association, 1994. 365 p. NAL Call No.: HD4605.M25 1994.

This book details all aspects of the processes involved in managing local governments. Of
particular relevance is Chapter Twelve, which details the factors which need to be considered
before the fiscal year, during the fiscal year, and after the fiscal year.

7
The Power of Partnerships: A Guide for Practitioners and Policymakers. Washington, DC:
National Association of Development Organizations, April 1998. 20 p.

This booklet examines collaboration between governmental and nongovernmental organizations.
It makes recommendations based on successful collaborations. Contains case studies.

8
Public Administration in Rural Areas and Small Jurisdictions: A Guide to the Literature. Beth
Walter Honadle. New York: Garland Publishing Co., 1983. 14 p. NAL Call No.: Z7164.L8H726.

Although methods of management and financial programs come and go, it is useful to be able to
have a glimpse of the prevailing attitudes and ideas of times past. This guide to the literature has
detailed listings of monographs and journal articles pertaining to Financial Management and
Budgeting, Public Finance, Planning, Federal and State Grant Programs, and a host of other topics.

9
Reinventing Government, How Entrepreneurial Spirit is Transforming the Public Sector. David E. Osborne and Ted Gaebler. Reading, MA: Addison Wesley, 1992. 408 p. NAL Call No.: JK469.082 1992.

The authors demonstrates what is being done in governments of all sizes to maximize programs
and services while cutting down on expenditures.

10
A Revenue Guide for Local Government. Robert L. Bland. Washington, DC: International City
Management Association, 1989. 197 p.

This comprehensive guide gives clear, well-structured descriptions of the main issues and
trends in revenue policy, the types of revenue collected by local governments, and the
relationship between local revenue collection and economic development.

11
School Finance: State Efforts to Equalize Funding Between Wealthy and Poor School
Districts
. Washington, DC: U.S. Government Accounting Office, June 1998. 101 p.

This report addresses the problem of providing adequate financing for schools in districts with
little taxable wealth, especially focusing on what states are doing to balance wealthy and poor
areas. (To order, phone: (202) 512-6000. Specify title and number [GAO/HEHS-98-92].)

12
"Small City and Rural Governance: The Changing Environment." Beverly A. Cigler. Public Administration Review, vol. 44, November/December 1984: 540-545.

In researching this topic, Ms. Cigler found a lack of literature dedicated to this topic. Although
written in 1984, its portrayal of the forum of policy discussion for local governments
represents the present state of affairs. The book stresses a multitude of services, which focus
mainly on dealing with dwindling budgets.

13
Survival Guide for Elected Leaders: Essential Skills and Resources for Small Town Officials.
Hamilton Brown and Lawrence Merrill.  Washington, DC: National Center for Small
Towns, 1994. 79 p.

This book addresses fundamentals such as how to organize meetings and manage personnel. It also
goes into more complex areas such as using volunteer efforts to cut expenses and handling
knotty personality issues both inside and outside the municipal building. There are sections on
budgeting and on the effective use of media to bring municipal programs into public awareness.

Financing

Current Trends in Finance and Funding

14
"The Changing Fiscal Structure of the State and Local Public Sector: The Impact of Tax and
Expenditure Limitations."
Philip G. Joyce and Daniel R. Mullins. Public Administration Review,
vol. 51, May/June 1991: 240-253. NAL Call No.: 280.8 P964.

Examines how the relationship between the Federal, state, and local sectors are affected by
tax and expenditure limits. Particular emphasis on the role of the state as an intermediary between
the federal and local levels of government.

15
Credit in Rural America. Economic Research Service, U.S. Department of Agriculture.
Agricultural Economic Report No. 749. Washington, DC: The Service, April 1997. 111 p. NAL Call No.: A281.9 Ag8A.

This federal report gives a thorough, up-to-date report on financial institutions and federal
programs that provide credit in rural America. (This publication may be obtained by calling (800)
999-6779. Request by title and report number.)

16
"Environmental Costs: Rough Weather Ahead for Small Communities?" Richard J. Reeder. Choices: The Magazine of Food, Farm, and Resource Issues, Third Quarter 1995: 8-12. NAL Call No.: HD1751 C45.

This article explains why small communities are facing increasing environmental costs and
suggests that action at regional, state, and national levels is necessary to reduce local burdens.

17
"Financing Rural America: A Conference Summary." Mark Drabenstott and Larry Meeker.
Kansas City, MO: Federal Reserve Bank of Kansas City, 1998. 10 p. NAL Call No.: HN90.C6F48 1997.

Examines the importance of capital to the rural economy and what can be done to improve the
operation of rural financial markets. Particularly focuses on the seven states of the Tenth Federal
Reserve District. (This article can be obtained under "Publications" at http://www.kc.frb.org
or by writing to Public Affairs Department, 925 Grand Blvd., Kansas City MO 64198-0001 or
calling (816) 881-2683. Numerous related articles can be ordered or downloaded in full-text through the Web site given above.)

18
"Rural America." In Agricultural Fact Book, 1998. Office of Communications, U.S.
Department of Agriculture. Washington, DC: U.S. Department of Agriculture, 1998. (printed edition under: NAL Call No.: aS441.A36. Supt. of Docs., U.S. GPO, distributor)
http://www.usda.gov/news/pubs/fbook98/chart4.htm

This document (available in PDF format on the Internet) gives an overview of nonmetropolitan
population, age and race, nonmetropolitan industry and job growth, nonmetropolitan income and
poverty, rural public services, and Federal funding for rural area development.

19
"Local Government Fiscal Burden in Nonmetropolitan America." Kenneth M. Johnson. Rural Sociology, vol. 16, no. 3, fall 1995: 381-398. NAL Call No.: 281.28 R88.

Taxpayers in rural areas typically pay proportionally more to support local government
than those in metropolitan areas. This article examines the factors that influence rural tax
burden and their implications for local economic development.

20
"Local Government Structure: Devolution and Pricing." Steven C. Deller. Review of Agricultural Economics, vol. 20, no. 1, spring/summer 1998: 135-154. NAL Call No.: HD1773.A3N6.

Recent economic pressures have changed the way rural local governments handle the delivery of
services. This technical, but well written article analyzes current issues, including privatization and
cooperative arrangements.

21
"Retrenchment and Fiscal Policy Planning: The Political Culture of Small Southern Towns." Gary A. Mattson. Public Productivity and Management Review, vol. 17, no. 3, spring 1994: 265-275.

As fiscal stressors increase for small cities, some Florida local officials are creating policy simply to
continue existing services. "Retrenchment" or shedding non-essential services is one way. The
smaller the town, the harder it is to implement innovative financing policies.

22
Rural Government--Poor Counties, 1962-87. Richard J. Reeder and Anicca C. Jansen. Rural
Development Research Report, No. 88. Washington, DC: Economic Research Service,
U.S. Department of Agriculture, February 1995. 27 p.

This report examines the trend to increase government services to those areas considered
"government poor" which hindered rural development. The report finds that even though
by 1987, few areas could any longer be considered "government poor," that government
poverty continues to be a problem in totally rural areas such as the South Central part of the U.S.
(This publication may be obtained by calling (800) 999-6779. Request by title and report number.)

23
Targeting Aid to Distressed Rural Areas: Indicators of Fiscal and Community Well-Being.
Richard J. Reeder. Report no. AGES 9067. Washington, DC: Economic Research Service,
U.S. Department of Agriculture, November 1990. 54 p. NAL Call No.: aHJ9145.R44.

This report examines how the government targets aid for rural areas. The author suggests that more
care in selecting targeting fiscal indicators would improve program efficiency and equity. (This
publication may be obtained by calling (800) 999-6779. Request by title and report number.)

24
"Which Federal Programs Are Most Important for the Great Plains?" Rick Reeder, Faqir Bagi, and Samuel Calhoun. Rural Development Perspectives, vol. 13, no. 1, June 1998: 52-58. NAL Call No.: aHN90.C6R78.

This article examines why the Great Plains receives more Federal funds, per capita, than the
country as a whole. Changes in federal programs would affect the region.

25
"Who's Vulnerable to Federal Budget Cuts?" Richard Reeder, Faqir Bagi, and Samuel Calhoun.
Rural Development Perspectives, vol. 11, no. 2, February 1996: 36-42. NAL Call No.: aHN90.C6R78.

Metropolitan areas are vulnerable to Federal funding cuts due to the larger per capita
expenditures. However, depending on which programs are cut, nonmetropolitan areas could be
disproportionately affected. This article examines overall, which areas of most vulnerable to Federal
budget cuts.

Sources/Methods of Financing

26
"Are Revolving Loan Funds a Better Way to Finance Rural Development?" James. J. Mikesell
and George B. Wallace. Agricultural Information Bulletin No. 724-05. Washington, DC: Economic
Research Service, U.S. Department of Agriculture, October 1996. 4 p. NAL Call No.: Fiche S-133 (A 175.724-05).

Revolving loan funds have been helpful in providing credit to rural small businesses. When
they are used to finance businesses in trouble, problems may arise. This article discusses
possible solutions. (This publication may be obtained free of charge at http://www.ers.usda.gov/
or by calling (800) 999-6779. Request by title and report number.)

27
Community Development: CDFI Fund Can Improve Its Systems to Measure, Monitor, and
Evaluate Awardees' Performance
. Washington, DC: U.S. Government Accounting Office, July
1998. 75 p.

Community Development Financial Institutions (CDFIs) provide lending and investment services,
often in economically distressed areas. This government report evaluates the early efforts of
the federal CDFI Fund, which was created in 1994 to aid such institutions. (To order, phone:
(202) 512-6000. Specify title and number [GAO/RCED-98-225].)

28
"Financing Rural Governments." Richard Reeder and Clifford Rossi. In Financial Market
Intervention as a Rural Development Strategy. ERS staff report; Report No. AGES 9070.
Washington, DC: Economic Research Service, Agriculture and Economy Division, US
Department of Agriculture, 1990: 59-76. NAL Call No.: aHN90.C6F5.

This article discusses major sources of financial revenue and capital resources available to rural
local government. It examines the provisions of services, financial management, capital markets,
tax base and, infrastructure for small town government. It sets its analysis in the broader
framework of rural development strategies. (Financial Market Intervention as a Rural
Development Strategy may be obtained by calling (800) 999-6779. Request by title and Report No.: AGES 9070.)

29
A Guide to Funding Resources. Rural Information Center Publication Series. Beltsville,
MD: Rural Information Center, National Agricultural Library.

This is a compilation of funding opportunities available from government and private sources to
local governments, small business, organizations, associations, groups, and individuals. It includes
information on grants and funding, the grant seeking process, tips for proposal writing
and presentation development, analyses of grant making programs, and bibliographies of
additional resources. (For a free copy call the Rural Information Center at (800) 633-7701.)

30
"How Would Rural Areas Fare Under Block Grants?" Richard J. Reeder. Agricultural
Information Bulletin No. 724-03. Washington, DC: Economic Research Service, U.S. Department of Agriculture, April 1996. 4 p. NAL Call No.: 1 Ag84Ab no. 724-03.

Block grants are supposed to improve program performance and reduce costs (allowing the
Federal government to cut the deficit without reducing benefits to the grant recipient).
Research and statistics on past block grants indicates mixed success. Sometimes locally
administered funds have resulted in less targeting to the intended beneficiaries, such as poor people
and communities, and has caused Congress to impose new restrictions on block grant programs.
(This publication may be obtained free of charge at http://www.ers.usda.gov/ or by calling (800)
999-6779. Request by title and report number.)

31
Lending for Community Economic Development: A Guide for Small Town and Rural Lenders. Andrew W. Hogwood, Jr. and Alice Shabecoff. Washington, DC: Community Information Exchange, 1992. 99 p. NAL Call No.: HG2040.2.H65 1992

This guide may be obtained by contacting The Community Information Exchange, 1029 Vermont
Ave., NW, Ste. 710, Washington, DC 20005 at (202) 289-3709.

Budgeting and Planning

32
"Budgeting for Accountability: Municipal Budgeting for the 1990s." Irene Rubin. Public
Budgeting & Finance, vol. 16, no. 2, summer 1996: 112-125.

This article discusses public accountability in government budgeting. It gives a well organized
historical, legal, and economic background of the accountability issue, as well as current scenarios
and suggestions.

33
"Current Local Government Budgeting Practices." Daniel O'Toole, James Marshall, and Timothy Grewe. Government Finance Review, vol. 12, no. 6, December 1996: 25-29.

This article examines current budgeting practices and methods, based on data gathered by the
Government Finance Officers Association in a survey of its membership. (See also: Government
Finance Officers Association [GFOA] in the ORGANIZATIONS of this publication. GFOA
publishes books and articles on budgeting and other local government concerns, listed on their
Web Page at http://www.gfoa.org )

34
"The Fiscal Impacts of Alternative Land Uses: What Do Cost of Community Service Studies
Really Tell Us?"
Timothy W. Kelsey. Journal of  the Community Development Society, vol. 27, no. 1, 1996: 78-88.

This article examines the costs and benefits of different types of land use. It especially looks at
the Cost of Community Service ratio, a simple method of comparing cost of providing services
to revenue generated.

35
"How Rural Local Governments Budget: The Alternative to Executive Preparation." Alvin D. Sokolow and Beth Walter Honadle. Public Administration Review. Vol. 44, September/
October 1984: 373-383. NAL Call No.: 280.8 P964.

In 1984, little systematic understanding of budgeting and other governmental activities in
small and rural communities existed. This article, still pertinent, explores the budgetary process in
small, local governments. Local governments vary tremendously in their  treatment of the importance of budgeting as a policy.

36
"Public School Finance Policies and Practices Affecting Public Schools." In The Condition of
Education in Rural Schools, Joyce D. Stern, ed. Washington, DC: Office of Educational Research
and Improvement, U.S. Department of Education, June 1994: 47-52. NAL Call No.: LC5146.C649 1994.

This article discusses the typical disparity between local school districts -- "reflecting the relative
wealth of the communities that support the districts." The author suggests that various
methods can assist rural areas equalize this disparity. Some of those methods could be
equalization formulas, capital outlay and debt service programs, or methods of assessing fiscal
capacity and fiscal effort -- none of which are easy. This publication is available from the U.S.
Government Printing Office, Superintendent of Documents, Mail Stop: SSOP, Washington, DC
20402-9328.

37
"Nontraditional Revenues: Keeping the Property Tax Under Control in a Small Town." Rodney C. Lynch. Government Finance Review, vol. 7, no. 3, June 1991: 38-39. NAL Call No.: HJ9103.G62.

Briefly summarizes current trends in minimizing the rate of increase in property taxation. Indicates
alternative measures and means of fiscal cost control.

38
"No Staff, No Time, No Money: Can Budget Reform Work in a Rural County?" James S.
Massey and Gary Smith. International Journal of Public Administration, vol. 15, April 1994,
pp. 811-829.

Although reform can often be implemented with a limited amount of money, it is necessary for a
considerable amount of staff time to be utilized in order for programs to have a legitimate
opportunity to succeed. Overall objective needs to be clearly delineated in order for all participants to work toward a common goal.

Financing Transportation and Infrastructure

39
"Federal Funding Sources." Community Transportation of America. Community
Transportation, vol. 15, no. 8, November 1997:  9-15. NAL Call No.: HE308.C6.

This article summarizes current sources of federal funding for transportation. Also see listing for
Community Transportation of America in the JOURNALS section of this publication.

40
"Financing Infrastructure in Rapid Growth Communities: The North Dakota Experience."
F. Larry Leistritz and Steve H. Murdock. In Local Infrastructure Investment in Rural America,
Thomas G. Johnson, et. al., eds. Boulder: Westview, 1988: 141-154. NAL Call No.:
HC110.P83l63.

Population growth in rapidly developing communities necessitates rapid building of infrastructure. This article closely examines such a situation, giving special attention to the state's role in easing local burdens.

41
"Rural America's Transportation Network: Issues for the 1990's." Dennis Brown. Rural
Development Perspectives, vol. 11, no. 2, February 1996: 10-16. NAL Call No.: aHN90.
C6478.

This article details many of the current problems in reads, bridges, rail, waterway, and air
transportation. It gives examples of conditions in across the country and includes descriptions of
many specific locales.

42
Rural Roads and Bridges: Financing Local Roads and Bridges in Rural Areas. Norman Walzer and Steven C. Deller. Washington, DC: U.S. Department of Agriculture, Agricultural Marketing
Service, Transportation and Marketing Division, 1997. 15 p. NAL Call No. aHE336.R85W37 1997.

This report examines the arrangements used by counties and towns to finance local roads and
bridges and compares current patterns with those recorded during the 1980s. Topics include
reliance on various revenue sources, a comparison of change in expenditures and inflation, and the
perceptions of local road administrations regarding the adequacy of expected future funding.

43
"Salvaging Our Failing Infrastructure: A Public works Challenge." Tom Black. American City and County, vol. 113, no. 10, September 1998: 64-91.

This article gives an in-depth description of  infrastructure problems across the country. A
brief section mentions local government liability for unsafe roads and bridges. It closes with a
discussion of possible solutions, including financing.

Approaches to Management

Leadership

44
Community Leadership Development: Implications for Extension. Northeast Regional Center for Rural Development. University Park, PA: The Center, [1986?]. 36 p. NAL Call No.: HM14.C65.

This booklet summarizes the experiences of USDA Cooperative Extension staff in community
leadership efforts. It explains ways in which community leadership programs can be developed
and gives examples of leadership theories and guidelines.

45
Community Leadership Development: Present and Future. Northeast Regional Center for Rural Development, Publication No. 50. University Park, PA: The Center, [1989?].  29 p. NAL Call No.: H90.C6N6 No. 50.

Though written for USDA Cooperative Extension staff and drawn from the mid-1980s, the
suggestions and perspectives should be of considerable value to community leaders who
wish to understand the diverse issues of leadership. The booklet describes the
accomplishments and recommendations of the National Extension Task Force on Community
Leadership.

46
Community Voices for Sustainability. Benedict J. Hren. Gaithersberg, MD: Izaak Walton League of America, 1998. 32 p.

This is a do-it-yourself workbook for organizing community leadership development workshops. It
provides a detailed outline of suggested procedures, from recruiting participants and conducting activities to evaluation of the workshop.

47
Developing Local Community Leaders. Oscar M. Williams and Delwyn A. Dyer. Virginia Cooperative Extension. Publication 301-021. Petersburg, VA: Virginia State University;
Blacksburg, VA: Virginia Tech, 1993. 16 p. NAL Call No.: S544.3.V8V52.

A brief overview of leadership concepts and competencies written expressly for community
leaders and developers.

48
"Growing Grassroots Leadership." Appalachia 26, vol. 26, no.4, fall 1993: 3-7. NAL Call No.:
HC107.A13A6.

The Brushy Fork Leadership Development Program, based in Kentucky, showed that average
citizens from rural communities were able to develop excellent leadership skills and contribute
to community development. This case study gives an inspiring description.

49
Leaders: The Strategies For Taking Charge. Warren Bennis and Burt Nanus. New York: Harper Business, 1997. 235 p.

This book offers a solid set of basics on leading and leadership. Written by two highly respected
authorities, its messages are clear and practical, and interesting reading as well.

Strategic Planning

Typically, strategic plans are considered when expanding the economic base of the community,
but local government leaders can also look at a strategic planning from the perspective of
financial management. 

In recent years much has been written about this topic. No set procedure is widely regarded as the
best. The following selections provide a sampling of what is available.

50
"The ecology of strategic management in small local governments." Martin Wiseman. Public
Administration Quarterly, vol. 17, summer 1993: 145-158. NAL Call No.: 280.8 P964.

Strategic management is an idea which was first implemented in the for-profit sector. This article
sets out to extract the ideas of strategic management, and analyze them with a focus on
which could effectively be applied in the environment of small or rural governments.

51
"The Power of Vision: Making the Strategic Plan Come Alive." Fred D. Baldwin. Appalachia, vol. 30, no. 3, September-December 1997: 6-13. NAL Call No.: HC107. A13A6.

The article describes how Land-of-Sky Regional Council (North Carolina) and Northwest
Pennsylvania Regional Planning and Development Commission used strategic planning to accomplish regional goals. Both groups received assistance from the Appalachian Regional Commission.

52
"Strategic Planning in a Rural County: The Example of Union County, South Carolina." Alan Daniel Young. Economic Development Review, vol. 11, spring 1993:18-21. NAL Call No.:
HC106.8.E25.

This article takes an in-depth look at strategic planning and focuses on its ability to work as an
effective tool for strengthening a community's resolve, and potential to utilize its resources to the
fullest. It uses the case study method to illustrate its various points.

Total Quality Management (TQM)

A potential side benefit of incorporating TQM into the operation of local government is that a great
number of small businesses have begun to practice TQM as a way of managing in order to
gain a competitive edge in the marketplace. With knowledge and practice of TQM, local
government and business share the same "language." By demonstrating efficiency, local governments present more viable partners in development, and their communities become more attractive to businesses seeking to relocate.

53
"A Community Commits to Quality." Fred Baldwin. Appalachia, vol. 27, no. 3, summer
1994: 12-17. NAL Call No.: HC107.A13A6.

This article provides a solid introduction to TQM. It is also a good case study of how TQM
principles were applied in the city of Erie, Pennsylvania

54
"Total Quality Management." John D. Morand. Economic Development Review, vol. 11, summer 1993: 3-4. NAL Call No.: HC106.8. E25.2.

Over the past few years, TQM has been boldly implemented without prior consideration for the
time, effort, and attention it needs to be paid. This introductory article discusses some of the major
elements involved in the process and gives the reader insight into the elements involved in the
process.

Case Studies

55
"Hanging Together." Jim Schwab. Planning, vol. 56, January 1990: 24-5. NAL Call No.: HT167.A42.

This article discusses how a small town survives as a separate entity. A few years ago in Iowa,
some people did not believe that their town could afford to go it alone anymore. Initially, problems
of community rivalries and council members wanting to hold on to the "status quo" slowed progress, but much persistence saw this to be a viable answer to the communities problems.

56
"Institutionalized Use of Citizen Surveys in the Budgetary and Policy-making Process: A Small City Case Study." Douglas J. Watson, Robert J. Juster and Gerald W. Johnson. Public Administration Review, vol. 51, May/June 1991: 232-239. NAL Call No.: 280.8 P964.

Can citizen surveys be integrated into the policy, programming, and budget processes of local
governments? This is the issue raised by the authors in this case study of Auburn, Alabama.
They look at trends and potential for using citizen surveys, as well as potential drawbacks that often
result from their adoption in governmental decision making.

57
"Is Downtown Worth Saving?" James Krohe Jr. Planning, vol. 58, August 1992: 10-4. NAL Call No.: HT167.A42.

This article discusses downtown areas. Economic pressure, ease of access for commuters, and a
host of other items have made the fight of many downtown areas an uphill battle. When, where,
and which ones are in the hands of the residents. For if anything is evident, it is that both the public
and private sector need to work together if a downtown area is to survive and prosper.

Organizations

American Planning Association
1776 Massachusetts Ave., NW
Washington, DC 200367
(202) 872-0611
http://www.planning.org

American Planning Association is a nonprofit public interest and research organization that focuses on urban and rural planning. Sixty-five percent of its members are employees of state and
local government agencies. APA also sponsors a professional organization, the American Institute
of Certified Planners.

American Society for Public Administration
1120 G St., NW, Suite 700
Washington, DC 20005
(202) 393-7878
http://www.aspanet.org/

American Society for Public Administration is the largest professional association of practitioners,
teachers, and students of public administration.

Economic Research Service
U.S. Department of Agriculture
1800 M St., NW
Washington, DC 20036
(202) 694-5050 (customer service)
http://www.ers.usda.gov/

Economic Research Service (ERS) is a federal government agency within the U.S. Department of
Agriculture. ERS provides economic analysis on issues related to agriculture, food, the
environment, and rural development. 

Financial Accounting Foundation
401 Merritt Seven
Norwalk, CT 06856
(203) 847-0700
http://www.fasb.org

Financial Accounting Foundation (FAF) administers a Financial Accounting Standards Board and the Financial Accounting Standards Advisory Council. FAF defines standards of financial accounting for state and local governmental entities, operates a library which houses the National Automated Accounting Research System, and publishes Financial Accounting Series and Government Accounting Series.

Government Finance Officers Association
180 N. Michigan Ave., Suite 800
Chicago, IL 60601-7476
(312) 977-9700
http://www.gfoa.org

Government Finance Officers Association (GFOA) is the professional association of
state/provincial and local finance officers in the United States and Canada. GFOA provides updates
on current events, innovations, and federal legislation affecting public finance management.

International City and County Management Association
777 North Capitol St., NE, Suite 500
Washington, DC 10002
(202) 289-4262
http://www.icma.org

International City/County Management Association (ICMA) is the professional and educational organization representing appointed managers and administrators in local governments throughout the world. ICMA provides technical assistance, training programs, and publications for
local government officials and acts as a clearinghouse for local government information.

National Association of Counties
440 First St., NW, Suite 800
Washington, DC 20001
(202) 393-6226
http://www.naco.org

National Association of Counties (NACO) is an organization of county officials from all parts of
the United States. NACO provides legislative, research, technical, and public affairs assistance
to its members; acts as a liaison with other levels of government; works to improve public
understanding of counties; and serves as a national advocate for counties.

National Association of Development Organizations
and National Association of Development
Organizations Research Foundation
444 North Capitol St., NW, Suite 630
Washington, DC 20001
(202) 624-7806
http://www.nado.org

National Association of Development Organizations (NADO) is a public interest group which provides training, information and representation for regional development organizations in small metropolitan and rural America. NADO advocates a regional approach to community and economic development and provides a network for its members to share ideas and innovations.

NADO Research Foundation publishes Economic Development Digest (newsletter) and sponsors the Economic Development Finance Service, which provides training and information on revolving
loan funds and other small business finance techniques.

National Association of Regional Councils
1700 K St., Suite 1300
Washington, DC 20006
(202) 457-0710
http://www.narc.org

National Association of Regional Councils (NARC) is a nonprofit organization of regional councils, local government organizations created by joint agreements of the local governments they serve. Regional councils study problems that face an entire area and promote regional approaches to  
their solution. NARC provides a forum for these councils to share information and support.

National Association of Towns and Townships
444 North Capitol St., NW, Suite 208
Washington, DC 20001-1202
(202) 624-3550
http://www.natat.org

National Association of Towns and Townships (NATaT), an nonprofit organization, is a
federation of state and municipal organizations which provides assistance on problems and issues
of importance to local governments. NATaT researches and develops policy recommendations
to support the interests of small communities, sponsors conferences, training programs and
annual meetings, and publishes a newspaper ten times a years and various specialty reports of
interest to local public officials. 

National Center for Small Communities
444 North Capitol St., NW, Suite 208
Washington, DC 20001-1202
(202) 624-3550
http://www.natat.org/ncsc/

National Center for Small Communities (NASC) addresses the following concerns of small
communities:

Financing
Economic development
Federal regulations (compliance)
Environmental planning
Grant seeking and fund raising
Management of local government
Leadership training for local officials