Re-municipalization in the US: a pragmatic response to contracting

ABSTRACT We conduct a national survey of US local governments and find service outcomes – quality, cost savings and efficiency – are the primary drivers of re-municipalization, not political pressures. Logistic regression of 2,187 governments finds larger, urban and suburban, professionally managed local governments with more service capacity are more likely to report re-municipalization. Fiscal stress perception, local debt, and unionization rates have no effect. Re-municipalization is more likely in governments that also study privatization and conduct activities to ensure successful contracting. Thus, re-municipalization in the US is a pragmatic process of contract management, not primarily driven by political interests.