Abstract
Purpose. This study explored the concept of fiscal sustainability in local government by examining fiscal capacity, fiscal health, decisions local government officials have made to balance their cities' budgets given the aftermath of the Great Recession, and present-day fiscal challenges. By examining fiscal sustainability through a new lens such as fiscal health checklists and financial health diagnostic tools, fiscal sustainability task forces, and civic engagement/public participation, this study revealed additional opportunities for fostering fiscal sustainability. Theoretical Framework. The theoretical foundations were based on the theory of sustainability within the context of local government finances and the theory of civic engagement/public participation. Methodology. This study focused on local government finances in 2 small to midsized cities in Southern California: Claremont and Upland. The researcher employed a nonexperimental mixed-methods research design using a comparative case study involving financial analysis, secondary data analysis of official public budget documents, city newsletters, and newspaper articles, and in-person semistructured interviews with city officials (city managers and finance directors). The data were collected and analyzed to (a) evaluate fiscal sustainability in local government and (b) determine how to foster fiscal sustainability in local government, particularly through fiscal health checklists and financial health diagnostic tools, fiscal sustainability task forces, and civic engagement in the policymaking process. Findings. The findings suggested strategies and practices for public officials to improve fiscal health and cultivate fiscal sustainability. Six main themes emerged: (a) Be proactive through continuous budget monitoring through use of fiscal health checklists and financial health diagnostic tools, (b) gather ideas and feedback from fiscal sustainability task force/committee members, (c) involve the community through civic engagement efforts and participatory budgeting, (d) embrace civic engagement and sustainability as part of city culture, (e) establish reserve policies, and (f) invest in economic development and sustainability plans. Conclusions and Recommendations. The findings indicated that Claremont is in better fiscal health than Upland due to several operational and cultural differences. Cities that foster fiscal sustainability are proactive, visionaries, engage their communities in-person and online, value citizen feedback, and have a high level of transparency in regard to government financials.