Towns In Budget-Crunched States Push Back Against Efforts To Cut Municipal Services

06/08/2011 10:05 am ET | Updated Aug 08, 2011
  • Kate Linebaugh The Wall Street Journal

Around the country public officials are asking themselves similar questions. Plunging property-tax receipts and rising pension and health-care costs have pushed many municipalities to the brink of financial collapse. The idea is that local governments can operate with fewer workers and smaller budgets if they do things like combine fire departments, create regional waste authorities and fold towns and cities into counties.

But selling the notion in small communities like Onekama is no easy job. Public officials have floated a proposal to merge this village of 1,500 along Lake Michigan into the township that encircles it. Some residents worry that a leaner government risks becoming a less responsive one.

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