Innovative Solutions to the Municipality of Jerusalem’s Fiscal Problem

The Municipality of Jerusalem operates under a rapidly growing operating budget deficit, which in 2019 reached 950 million shekels. The deficit is currently being financed by a central government balancing/capital city grant. Given the planned central government budget cuts for the years ahead, this financing source cannot be relied upon in the future. This is not a problem exclusive to Jerusalem. Only 12% of local governments in Israel operate under a balanced budget without a balancing grant. This research will examine how we got to this unsustainable situation and will offer a number of innovative fiscal mechanisms that the municipality can add to its revenue tool box.

Ryan Macks
A 2018-2019 fellow, Macks interned at the Municipality of Jerusalem at the strategic division. Prior to joining the Fellows program, he worked with local governments in Illinois and Indiana, USA on various projects in the fields of city finance, management...
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