The looming local budget crises

As bad as the federal budget crises is, local governments budget crises are shaping up to be worse.  The idea that it's always a good idea to get government services as close to the taxpayers as possible for better citizen control, is proving to be a sham.  Local governments across the land are now facing crises largely driven by the pension obligations accrued over the past couple of decades.  Since local budgets are typically tied to property, sales taxes, and fees, look for substantial increases in these sources of revenue in the coming years, otherwise a lot of municipalities will be defaulting.  Steve Malanga of City Magazine lays out the dilemma here.  At least the federal government can default on its obligations by inflating them away thorough the printing press.  No such luck on the local front where the only recourse is to raise taxes.  It's probably safe to say this particular financial crises has been brought about by neglect on the part of local citizens who often work outside of their local district and tend not to follow budgetary matters closely.  That will change in the new world.