Amalgamation proposal for Tasman and Nelson - the pros and the cons

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Presentation Description

A slideshow presentation by Wendell Cox regarding the pros and cons of amalgamating councils based on his experience in local government across the globe. Supporting information supplied by the late Owen McShane.

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Presentation Transcript

PowerPoint Presentation:

The Value & Efficiency of Local Democracy Wendell Cox 17 March 2012

Bigger is Not Better:

Bigger is Not Better

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Larger Governments Spend More UNITED STATES & CANADA

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Smaller Local Governments Spend Less US MUNICIPAL GOVERNMENTS: 2008 PER CAPITA  Smaller Governments Fire, Police, Libraries Roads, Parks & Recreation

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 Smaller Governments Public Purpose Debt Outstanding: End of Year Smaller Local Governments Borrow Less US MUNICIPAL GOVERNMENTS: 2008 PER CAPITA DEBT

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Government Efficiency in Pennsylvania

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Includes County Allocation  Smaller Governments Smaller Local Governments Spend Less PENNSYLVANIA: 2001 PER CAPITA Same relationship in large metropolitan areas

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Includes County Allocation  Smaller Governments Smaller Local Governments Borrow Less PENNSYLVANIA: 2001 PER CAPITA DEBT SERVICE Same relationship in large metropolitan areas

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Government Efficiency in New York

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 Smaller Governments Smaller Local Governments Spend Less : NEW YORK: 2005 PER CAPITA Same relationship in large metropolitan areas

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 Smaller Governments Smaller Local Governments Borrow Less NEW YORK: 2005 PER CAPITA DEBT Same relationship in large metropolitan areas

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Government Efficiency in Illinois

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 Smaller Governments Fire, Police, Libraries Roads, Parks & Recreation Smaller Local Governments Spend Less ILLINOIS MUNICIPAL GOVERNMENTS: 2009 PER CAPITA

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 Smaller Governments Smaller Local Governments Borrow Less : ILLINOIS MUNICIPAL GOVERNMENTS: 2009 PER CAPITA General Obligation & Revenue Bonds: Except Water, Electric & Housing

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Job Growth by Average Government Size METROPOLITAN AREAS: MIDWEST & EAST: 1984-2009 Private Sector Employment

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Why Larger Governments Cost More LARGER GOVERNMENTS. V. LOCAL DEMOCRACY Harmonization of Labor Contracts & Service Levels Citizens Lose Control Less Voter Access Greater Interest Group Access

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… the harmonization of wages and service levels has resulted in higher costs for the new City. We will all continue to feel these higher costs in the future. Toronto City Summit Alliance 2003 Toronto’s Costly Government Abolition HIGHER COSTS, PROMISED SAVINGS NOT ACHIEVED

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Abolition & Consolidation is Unpopular VOTERS UNDO CONSOLIDATIONS IN MONTREAL Montreal

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Local Government Secession IRREVOCABILITY Los Angeles: SAN FERNANDO VALLEY HOLLYWOOD HARBOR 

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Indianapolis Financial Woes MODEL CONSOLIDATED GOVERNMENT? $1B State Pension Rescue $400M Unfunded Pension “Unsustainable Fiscal Path” - Mayor NEW YORK PHILADELPHIA

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Too Many Governments? 1,300 GENERAL GOVERNMENT UNITS: METROPOLITAN PARIS

Loss of Citizen Access:

Loss of Citizen Access

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Local Democracy: Government Closer to the People The need to focus on objectives