Although metropolitan regions produce much of the nation’s economic wealth, they also have many urban problems related to concentrations of poverty, unemployment, crime, and low business activity. These problems are often found in central cities or particular areas within central cities, but they can be widespread in suburban jurisdictions that are near the central city. Not surprisingly, periods of economic decline disrupt metropolitan economies greatly, but suburban local governments with more urban problems are likely
to become worse off than those with fewer urban problems because of lower capacity and fewer assets to leverage.

This article is supporting documentation for the Alliance for Innovation Navigating the Fiscal Crisis white paper.