L.A.'s Crown Jewels: Historical Governance and Finance Lessons

Abstract

In contrast to academic debates over metropolitan coordination, which draw a sharp distinction between government and governance, we describe a third approach whereby existing regional and local public bureaucracies coordinate rule-making and policy implementation by functionally-specific local agencies. In particular, we consider the historical performance of two region-wide vehicles set up to promote cooperation across local jurisdictions - the Metropolitan Water District of Southern California and Southern California Regional Airport Authority - in promoting regional cooperation, responding to contemporary challenges, and balancing the benefits and burdens of growth. The experiences of these agencies show the benefits of proper institutional design. Carefully designed power-sharing arrangements enhance policy effectiveness and legitimacy without unduly compromising local sovereignty. Arrangements that fail to specify the responsibilities of members, impose super-majority voting rules, or subject agency decision making to the whims of term limited elected officials often prevent public bureaucracies from carrying out their core mission.

Keywords: California politics, bureaucracy and public administration, economic

JEL Classification: H7, R5