In this phase, we hold conversations with community partners, local organizers, and local government officials. From these interviews, a research framework is developed. Through this we seek to answer the following research questions:

• What are some of the most salient social risks impacting fiscal health that focus on those most impacted (the who, what, where, how)?
• How did conditions get this way? This includes historical events, actions at all levels of government, and private sector behaviors.
• What’s the cost of the community’s current inequity (measured in dollars and wellbeing) and how does this impact the city’s long-term solvency?
• Who stands to win and lose the most based on these risks?
• What do residents and local advocates want? How is this similar or different from what other stakeholders are proposing or demanding?
• What are the projected financial and social impacts of the proposed solutions?
• To what extent are potential new funding sources well matched to accomplish the changes that need to occur?

This phase consists of compiling relevant existing public finance and policy research, peer-reviewed reports, and data to develop a profile of the community’s financial health.

Data is drawn from publicly available administrative data, FOIA requests, and trusted community partners. This includes an assessment of financial trends, local and regional development efforts, tax and land use policy, as well as the state and local regulatory framework. The aim of this research is to get a “lay of the land” of local policy issues that have material fiscal implications. Examples include tax abatements and inclusive economic development, police misconduct, water infrastructure, and water utility rates, excessive fines and fees reliance, banking, and climate change mitigation, among others. 

Additionally, we assess the diversity, equity, and inclusion implications of the city’s budget, including its revenues, expenditures, and balance sheet. We focus our attention on reassessing budget priorities and missed opportunities, areas of over and underinvestment, and which stakeholders stand to win and lose. The research will result in a summary memo with a list of five to seven recommended policies and practices that the local government can start or stop implementing, the projected net savings or new revenue, the research basis behind the impact, and implementation implications.

This final phase consisted of reviewing key themes from the research phase, developing a pro forma of the jurisdiction’s financial statements, and quantifying the impact of the fiscal justice risk. Additional feedback from a panel of public finance practitioners and scholars is then incorporated into the final draft of reporting.