Does Financial Distress Detract from Sustainability Efforts? The Case of Local Governments

• In Event: Financial Reporting Disclosures, Sustanability and Related Topics

Abstract

Sustainable development research at the local government level is imperative as local government revenue and expenditures are a vital part of the U.S. economy. To represent the commitment of local governments to sustainability, this study utilizes data from a survey conducted in 2010 by the International City/County Managers Association (ICMA) in the Southern Region of the United States. The extent to which local governments implement environmental action programs was compared to seven predictors of financial distress. Results suggest local governments implementing more environmental programs tend to experience less financial stress as measured by levels of intergovernmental revenue, administrative expenses, level of debt and size measured by revenue.

Authors

• Janet F Phillips, Southern Connecticut State University

• Pamela Jean Strickland, Methodist University