State laws that limit local fiscal authority to raise and spend revenue—known as tax and expenditure limits (TELs)—force local governments to turn to alternative forms of revenue generation, which often means fines and fees. Research shows that people of color and residents who have low income are disproportionately affected by fines and fees, which can “affect credit scores, plunge families into debt, result in loss of a driver’s license, or lead to incarceration”—all outcomes that negatively affect health. Read more from Watts, MH, Michel, KH. Equitable Enforcement to Achieve Health Equity: An Introductory Guide for Policymakers and Practitioners. ChangeLab Solutions. July 2020. https://www.changelabsolutions.org/product/equitable-enforcement-achieve-health-equity.
During the time of COVID-19, restrictions on municipal revenues forced cities and counties to cut services, lay off and furlough employees, and mothball capital projects, which had consequences for local employment, business contracts, and overall investment in the economy and community. Read more from Haddow, K, Carr, D, Winig, BD, Adler, S. Preemption, Public Health, and Equity in the Time of COVID-19. August 2020. https://www.publichealthlawwatch.org/covid19-policy-playbook.
Preemption of local authority to raise and spend money often results in the loss or diversion of municipal revenues, harming urban, suburban, and rural communities alike. Read more from Bravo, N, Warner, ME, Aldag, A. Grabbing market share, Taming rogue cities and Crippling Counties: Views from the field on state preemption of local authority. Dept. of City and Regional Planning, Cornell University. March 2020. http://cms.mildredwarner.org/p/298.
A 2024 paper examined state takeovers across four main policy areas traditionally reserved to localities, including education (e.g. local school districts); finances (e.g. economically distressed municipalities); the criminal legal system (e.g. policing, prosecutors, and judges), and voting (e.g. local election administration) and showed that such state interference increasingly is being used in majority-Black cities. Evidence to date suggests that these state takeovers are not only anti-democratic but also result in suppressing local Black political power and undermining the political will of Black voters. Read more from Sandhya Kajeepeta, When the State Takes Over: How State Officials Usurping Local Control Threatens Local Black Political Power, 52 Fordham Urb. L.J.