Cutback Budgeting

This study asks whether short-term cutbacks made during a fiscal crisis become permanent once fiscal conditions improve. Hypotheses are developed to establish a framework for analyzing a time-series data set. These hypotheses address trade-offs between less essential versus more essential services, salaries versus positions, and capital versus operating expenditures. Then long-term consequences are assessed with a longitudinal, comparative case study of the effects of New York City's mid-1970s fiscal crisis on education services in the city. Education services were cut dramatically in 1976 and 1977. The trends in those services, defined in various ways, are compared over time and in relationship to the rest of New York State. We find that less essential services, teacher positions, and capital and maintenance expenditures suffered, relative to more essential services, operating expenditures, and teacher salaries

Business · Economics · Term (time · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Housing Market and Economics

• Fiscal Retrenchment in Southern Europe

  Fabrizio Di Mascio, Alessandro Natalini•Public Management Review•2015

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• Machine learning to predict local government deficits during economic downturns

  Whitney B Afonso, Jose Sanchez Gomez•Journal of Public Budgeting…•2026

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• Fiscal Shocks, Budgetary Pressures, and Public Education Expenditure Stabilization

  Peter A Jones, Vincent Reitano et al.•International Journal of Public…•2022

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• The Ghost of Crises Past

  Open Access•Fabrizio Di Mascio, Alessandro Natalini et al.•Public Administration•2011

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• Pragmatic Municipalism

  Open Access•Yunji Kim, Mildred E Warner•Public Administration•2016

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• Spending allocations during low and high fiscal stress

  Open Access•Søren Kjær Foged•Public Administration•2021

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• Cutback management literature in the 1970s and 1980s

  Open Access•Ringa Raudla, Riin Savi et al.•International Review of…•2015

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• A better budget rule

  Open Access•Michael U Dothan, Michael Dothan et al.•Journal of Policy Analysis and…•2009

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• Recession as a window of opportunity for public sector recruitment

  Ron Mandelbaum, Amos Zehavi•Policy Studies•2014

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• The Impact of New York City’s 1975 Fiscal Crisis on the Tuberculosis, HIV, and Homicide Syndemic

  Nicholas Freudenberg, Marianne Fahs et al.•American Journal of Public Health•2006

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• The effectiveness‐equity tradeoff when resources decline

  Open Access•Sanghee Park, Jiaqi Liang•Public Administration Review•2024

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• Overshooting and Adjustment

  Open Access•Ulrik Hvidman, Kurt Houlberg et al.•Public Administration Review•2025

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• Local Government Responses to Fiscal Stress

  Open Access•Ashlyn Aiko Nelson, Rekha Balu•Public Administration Review•2014

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• Cutback Management and the Paradox of Publicness

  Open Access•Sanjay K Pandey•Public Administration Review•2010

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• Decentralization, Devolution, Financial Shortfalls, and State Priorities in Service Programs in the Early 2000s

  Michael R Sosin•Journal of Public Administration…•2012

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• Direct Democracy and Administrative Disruption

  Vladimir Kogan, Stéphane Lavertu et al.•Journal of Public Administration…•2017

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• Temporary Crises and Priority Changes

  Michael R Sosin, R Smith et al.•Journal of Public Administration…•2010

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• How the Spending Patterns of Cities Change

  Open Access•Robert C Rickards•Journal of Policy Analysis and…•1984

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