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U.S. cities have recently increased the share of their budgets devoted to policing and decreased the share devoted to social services. A growing body of research, however, demonstrates that social services can durably reduce crime, raising the question: Does spending more on police and less on social services reduce crime in the short term only to increase it in the long term? This presentation addresses this question in three ways. First, it reviews recent trends in municipal budgeting. Then, it summarizes the causal evidence on the local government functions that best reduce crime, focusing on policing, education, employment, and housing. Research suggests education spending efficiently and durably reduces crime with fewer negative externalities than policing but with longer delays. The impact of spending on housing and employment is promising but nascent. The presentation concludes by recommending future directions for research, arguing for greater attention to government budgets and a renewed emphasis on the root causes of crime trends.