Abstract: Can local governments contribute to the recovery-directly and indirectly? Directly, local governments need to spend money. A banker who is a council member in an Alliance city is reported to have argued that if local governments stop spending, the recession will be worse and deeper. Local governments should utilize the bond authority they already have to get projects underway. Furthermore, it seems likely that the stimulus
package will include public works funding that will rely on local governments to organize.

This article is supporting documentation for the Alliance for Innovation Navigating the Fiscal Crisis white paper.