Approaches to Solutions of Municipal Fiscal Distress: a Descriptive Case of Matteson, Illinois

Approaches to Solutions of Municipal Fiscal Distress: a Descriptive Case of Matteson, Illinois

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Publication Date

Winter 2024

Document Type

Article

Abstract

The aim of this case study is to provide a detailed picture of causes and consequences of fiscal emergencies and to examine different approaches the Village of Matteson, Illinois, used to improve its financial position between 2009 and 2024. Specifically, we focus on the following research questions: (1) What are the main causes of fiscal stress? (2) How did Matteson address its fiscal challenges? and, (3) What recommendation for improvement of fiscal health conditions in Matteson could extrapolate to other local governments? This case study analysis supports a Theory of Municipal Fiscal Emergency and Bankruptcy by Guzman and Ermasova (2023). We found that Matteson went through three stages of exit from its fiscal stress situation suggested by Guzman and Ermasova (2023): Haphazard, Emergency, and Innovative Responses. Matteson tackled its fiscal problems by “stretching the budget,” creating a business district tax and municipal hotel tax, establishing new fines, installing traffic-light cameras on heavy traffic roads, collecting higher service charges and permit fees, improving budgeting practices, achieving Home Rule status, and providing financial incentives to businesses to support economic development.

Journal Title

Illinois Municipal Policy Journal

Volume

9

Issue

1

ISSN

2573-0630

Beginning Page Number

1

Last Page Number

22

Approaches to Solutions of Municipal Fiscal Distress: a Descriptive Case of Matteson, Illinois

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