Intergovernmental Service Contracts: A Multivariate Explanation

A model of intergovernmental service contracting is tested for U.S. cities of 25,000 and over population. In this model, the decision process is assumed to be shaped by many of the same forces that affect contracting to the private sector, namely, cost considerations, fiscal pressures, and political influences. Considerable support is found for the model, although fiscal stress is not a major impetus for contracting with other jurisdictions. The presence of a city manager facilitates greater intergovernmental contracting, although restrictive state laws limit such arrangements. Above all, when local officials fear loss of service control, less intergovernmental contracting occurs.