Commentary: 2016's Cities With the Most Efficient Public Spending

20 April 2016 12:19PM

How efficiently do cities spend taxpayer dollars? A new WalletHub study assesses public spending in 78 American cities, examining key expenditure categories such as education, law enforcement, and parks and recreation. Durham and Raleigh ranked 31st and 41st, respectively. 

Weighing in as an expert, Professor Michael Munger identified budgets and affordable housing as two of the biggest issues facing city governments today, but noted that “from an efficiency perspective, American cities are a mess.” He attributed this to the democratic system: “As H.L. Mencken said, ‘elections are advance auctions in stolen goods.’ Politicians are obliged to use promises, and public money, to buy votes from powerful interests.”

But all is not lost. Munger also offered four “central policies” for effectively and efficiently managing cities: low taxes; low regulatory burden for start-ups, building permits, and licenses; investment in general and universal infrastructure and education; and, a balance of concern for preservation by restrictive zoning and development through large anchor projects in downtown.

Munger is a professor of political science and economics, and is the director of the Philosophy, Politics, and Economics certificate program at Duke University. His research focuses on the functioning of markets, regulation, and government institutions.