The developing fiscal crisis facing city and county governments calls for extraordinary actions by local officials. Fortunately, research on organizations’ responses to previous downturns and other adversities provides important lessons for today’s managers. A cadre of researchers in the Academic Network of the Alliance for Innovation prepared this white paper for the International City/County Management Association (ICMA). It is intended to help local government managers understand the nature of this fiscal crisis and the steps they can take to support economic recovery. This white paper is accompanied by a PowerPoint presentation given by Robert O’Neill, Executive Director ICMA and Karen Thoreson, Deputy Director Alliance for Innovation.