By Torey Hollingsworth, GOPC Manager of Research and Policy

A new working paper written by researcher Alan Mallach and released by the Lincoln Institute of Land Policy explores how state governments can support lasting and inclusive urban revitalization. By law, cities are subject to significant intervention by state governments, even in states where municipalities have home rule authority. To greater or lesser extents, states set guidelines about what cities may or may not do, which can bolster or limit their ability to build stronger economies and neighborhoods. States also typically have access to greater resources, meaning their financial and programmatic support – or lack thereof - for urban revitalization efforts can make a significant impact. In Ohio, cities have home rule authority, which allows for a degree of autonomy from state authority. But the state can still broaden or limit municipalities’ powers, including their capacity to raise revenue, or as seen recently –can choose to reduce state revenue sharing.  Municipalities’ fates are not determined by state policy alone – but state policy can be a headwind or tailwind for cities seeking to turn things around.

Mallach defines urban revitalization as a series of processes that together can create transformative change. Specifically, he identifies five key elements of the broader urban revitalization process: fiscal and service delivery capacity; healthy real estate markets; healthy neighborhoods and quality of life; economic competitiveness; and human capital development. While each element requires unique strategies and interventions, the elements are so interdependent that cities must work on all of them in concert to make real progress.

These elements are also subject to what Mallach calls an “inclusivity screen,” which measures the extent to which the benefits of growth and revitalization are available to all of the city’s residents. As discussed in the recent report “Looking for Progress in America’s Smaller Legacy Cities,” which was summarized in an earlier blog post, many revitalizing cities have struggled to make new prosperity broadly accessible to residents. But evidence suggests that more inclusive growth leads to greater economic gains and less political turmoil, underscoring the importance of viewing all revitalization efforts through the inclusivity lens.

By examining states’ roles in impacting the five elements of urban revitalization and inclusivity, Mallach derives principles that should guide state policy in supporting successful revitalization.

• “Support cities’ efforts rather than attempt to substitute for them”: Urban revitalization efforts will only be successful if they are driven by local leadership. State governments must recognize that local officials have the best understanding of their communities’ needs, and that constraints placed on programs or spending at the state level often hinder the local creativity necessary to successfully revitalize.
• “Neutral is not neutral”: Jurisdictions do not begin on an even playing field, which means that places that start off stronger benefit more from “neutral” policies than those that began in a disadvantaged position. States should target their resources to jurisdictions that need them most and should reexamine policies that disadvantage central cities that are in need of revitalization.
• “Integrate urban revitalization into a regional framework”: Cities and the suburban and exurban regions that surround them make up a single economic unit, and as such, any revitalization efforts championed by state governments should encourage greater cooperation among jurisdictions in fragmented regions.
• “Break down silos and integrate revitalization elements”: A lack of coordination among government agencies and departments is a widely acknowledged problem. States should not only encourage local governments to remove internal barriers to coordination, they should also ensure that state agencies are organized in a way that promotes collaboration with local governments.
• “Build an inclusivity framework into state policies and programs”: Many of the challenges related to poverty and inequality are outside of a city’s immediate ability to control, and many cities fall short of addressing even those they can impact. States have an important role to play in increasing access to economic opportunity for residents, either by enacting state policies that directly benefit low-income people or by explicitly enabling or encouraging cities to create inclusive policies.

Mallach concludes that states are important actors in revitalization activities, and provides a long list of more concrete recommendations for how they can promote cities’ success. These recommendations include allowing for diversified municipal revenue sources, providing state dollars to seed catalytic redevelopment projects, and “fix-it-first” and multi-modal transportation policies. A full list of recommendations is available beginning on page 49 of the report.