The Mirage of Balanced Budgets

This chapter critically examines the common misconceptions surrounding balanced budgets in local government, asserting that mere balance does not guarantee fiscal health. The discussion highlights the repercussions of short-term fiscal strategies, such as relying on one-time revenues and deferring critical maintenance, which can undermine long-term sustainability. It underscores the importance of clear mission understanding and efficient financial management to ensure that municipalities can deliver reliable services amid challenging funding issues.