Fiscal Stress and Cutback Management Amongst State and Local Governments

The study of cutback management at the state and local levels, or the management of resources in times of fiscal decline, has evolved since its inception in the 1970s. Throughout this time, scholars have attempted to answer how and why cutback management takes place, as well as its implications for future economic development and fiscal health. However, a dearth of research exists on its use and implications across differing types of governments under differing circumstances. With a current crisis threatening fiscal health at all levels of government, understanding the effects of cutback management choices is more critical than ever. This essay reviews the evolution of the literature and proposes a future research agenda for cutback management analysis.