논문

This paper outlines brief history of local financial crisis and evaluation system currently practiced in America. Although the U.S. federal government does not evaluate local financial condition on a regular basis, three alternative methods are available. First, local governments evaluate their financial condition using the Financial Trend Monitoring System(FTMS) developed by ICMA. Information generated by FTMS helps to identify existing and emerging financial problems and develop actions to remedy these problems. Second, ACIR and other scholars developed indices measuring the financial disparity among local governments. Such measures permit state policymakers to determine whether the disparities are sufficiently large to justify state action and to design appropriate aid formulae to offset those disparities. Third, although it is not a general purpose evaluation of an issuing local government, the bond ratings by Moody's and Standard & Poor's provide credit ratings help governments of any level to better understand local government financial condition.