September 2017

ISSUE BRIEF

MERGERS MAY RESCUE

DECLINING SUBURBS
Aaron M. Renn
Senior Fellow
Mergers May Rescue Declining Suburbs 2

A
ccording to the 2012 census of Virtually all options for addressing inner-ring-
governments, there are 19,522 suburb challengesneglect, state subsidies, state
interventioncome with major drawbacks. However,
municipalities in the U.S.1 They all one option has not received the attention it deserves:
have their own budgets that are largely merger with the adjacent central city.
funded from their own tax base. Many
A merger is a fraught undertaking. To overcome
are prosperous and successful, but many political challenges, including resistance by a suburbs
others, particularly the so-called inner-ring residents, state government would need to finance
or first-tier suburbs next to central cities, transition costs, potentially absorb some legacy
costs, and provide funding for a capital-improvement
are in trouble. As one study noted, older program. Mergers should improve services in the
suburbs, particularly those built in the suburb but not at the expense of reducing them in the
1950s and 1960s, no longer attract new central city.
development or new residents and exhibit
Nor should local and state leaders necessarily wait
the very symptoms of decline that US cities until an inner-ring suburbs financial situation is dire
experienced some three decades ago.2 before pursuing this option. Rather, states should
step forward to assist with mergers of those suburbs
As inner-ring suburbs become progressively poorer, that are in decline prior to reaching a crisis state. This
they are less able to finance public services without paper provides data on all contiguous suburbs of select
tax increases, which drives away people and business, northeastern and midwestern cities: Buffalo, Chicago,
which further reduces the tax base. If these fiscal con- Cincinnati, Cleveland, Detroit, Kansas City, Milwau-
ditions are paired with poor governance and corrup- kee, New York, Pittsburgh, and St. Louis. These cities
tion, a turnaround can be especially difficult. were selected because they are postindustrial regions

Issue Brief
Mergers May Rescue Declining Suburbs 3

with significant municipal fragmentation and numer- Calumet City, Illinois (Chicago). This blue-collar
ous troubled suburbs. (See Appendix.) From this list, suburb, immediately south of Chicago, is the site of
the following 10 suburbs, selected from various metro the fictional orphanage where Jake and Elwood were
regions, depict the kinds of troubles that make them, raised in the film The Blues Brothers. Calumet Citys
and others similarly situated, candidates for mergers. fiscal anchor is River Oaks Mall, a 50-year-old enclosed
facility that is in decline. Two of its four anchor-store
East Cleveland, Ohio (central city: Cleveland). locations are empty. Macys and J. C. Penney, two
This municipality, contiguous to Cleveland, has lost shrinking chains, occupy the other two.12 The suburb
36.7% of its population since 2000.3 Ninety-three has also lost car dealerships. Retailers are important to
percent of its current 17,220 residents are black,4 and the suburbs fiscal health because Calumet City collects
the poverty rate is 42.6%.5 The city is classified as fis- a 1% local sales tax.13
cally distressed by the state of Ohio. Its budget has
fallen from $16 million to $10 million in about six Calumet Citys population, 36,732, is down 6% since
years, and nearly half the citys workforce was laid off 2000, and its poverty rate is up 10.1 percentage
during that time.6 In 2016, East Cleveland petitioned points, to 22.2%. Inflation-adjusted median household
the state to be allowed to file for Chapter 9 bankrupt- income, $27,153, has fallen by 30.2% since 2000. The
cy.7 The city is unable to provide basic services to its suburb is not yet truly distressed but is trending in
citizens. Last winter, the state department of transpor- the wrong direction. Should the River Oaks Mall fail,
tation had to lend the city two salt trucks because its outside capital assistance here might involve state help
own fleet was inoperable.8 The nearby community of in redeveloping failed retail sites with some sort of re-
Oakwood Village donated an ambulance to East Cleve- placement.
land, whose last ambulance broke down.9
Dolton, Illinois (Chicago). Dolton is directly west
East Cleveland was in discussions with the city of of Calumet City. It is also losing populationdown
Cleveland about a merger when its mayor was recalled 10.6% since 2000, to 22,891, and its poverty rate is
in a special election. The recall effectively killed merger 24.8%, up 16.5 percentage points since 2000. In 2015,
talks. As of now, no further action is being taken to The Bond Buyer listed Dolton as one of five candidates
advance a merger, though East Cleveland remains a for municipal bankruptcy in Illinois.14
prime candidate for it.
Black residents leaving Chicago have often landed in
Newburgh Heights, Ohio (Cleveland). The popu- suburbs like Dolton, whose current population is 91%
lation of this small, predominantly white village, 2,079, black.15 As with the previous move into urban neigh-
is down 13% since 2000, and its poverty rate over the borhoods that were once off-limits, the suburban
same period is up 15.3 percentage points, to 27.3%. The dream has often turned into a mirage, as these aging
inflation-adjusted median household has declined by communities have serious challenges. Unlike those
34.6%to $23,789since 2000. Newburgh Heights urban neighborhoods, however, separate municipali-
has been a prolific writer of traffic ticketsabout 300 ties like Dolton have no access to the tax base of the
per week even after the state of Ohio passed reforms to thriving Chicago Loop and North Side. Consolidation
curb the practice.10 of Dolton, Calumet City, and other similar communi-
ties with Chicago would correct this. True, Chicago has
Lackawanna, New York (Buffalo). Lackawanna severe fiscal problems of its own, but the city is much
is the former home of a major Bethlehem Steel mill, better resourced economically to respond to them than
which ceased most operations in 1983. The citys pop- most of its struggling suburbs.
ulation, 17,868, has dropped 6.3% since 2000, but its
poverty rate, 24.4%, is up 7.6 percentage points over Elmwood Place, Ohio (Cincinnati). Like other
the same period. The citys inflation-adjusted median river cities such as St. Louis and Pittsburgh, the Cin-
household income, $24,896, declined by 15.2%.11 Lack- cinnati area has numerous small, independent munici-
awanna is not experiencing a fiscal crisis but is in a palities. Elmwood Place is a small suburb of Cincinnati
metropolitan region with declining population that (population 2,180) that is losing people (down 18.7%
continues to build new housing on the fringeswhich since 2000). Its poverty rate is 31.2%, up 12.2 percent-
will lower demand for housing in inner-ring locations age points since 2000. The towns inflation-adjust-
such as Lackawanna. ed median household income, $19,450, has declined

Issue Brief
Mergers May Rescue Declining Suburbs 4

33.0% since 2000. In 2013, the Cincinnati Enquir- In 2015, former mayor Sylvester Caldwell was sen-
er declared that Elmwood Place was facing a grim tenced to 33 months in prison for extortion.24 In
future and questioned its viability.16 2016, a Pine Lawn police officer was sentenced to
prison for falsely arresting a mayoral candidate.25
Norwood, Ohio (Cincinnati). Norwood is en- That year, the city voted to dissolve its police de-
tirely surrounded by the city of Cincinnati. Enclave partment and contract for policing with a regional
suburbs such as Norwood may prove especially polit- agency.26 Pine Lawn, in short, is one of many small
ically challenging to merge, as their identity in part St. Louis suburbs whose continued existence as a
comes from having resisted historical annexation municipality should be questioned.
attempts. Norwood is losing population (down 8.3%
since 2000, to 19,876) and its poverty rate, 22%, is
up 9.1 percentage points. Inflation-adjusted median
household income ($27,270) has declined by 15.4% Suburban Challenges
since 2000. Last year, the state auditor declared a
state of fiscal emergency in Norwood, after 12 years The problems that plague many American cities have
on fiscal watch.17 The tax base was once supported proved difficult to address, but troubled suburbs
by a General Motors plant, with payroll tax revenues often face unique issues that can make them even
providing 28% of Norwoods budget in 1987, the year more difficult to turn around. These issues include:
the plant closed. Since then, the city has struggled.18
The citys financial condition is not dire, but it is Lack of visibility and accountability. A central city
finding it hard to provide services.19 is home to the regions major media organizations,
such as the daily newspaper read by top regional and
Ferrelview, Missouri (Kansas City). Ferrelview state leaders. These media organizations focus on
is a tiny enclave, population 633, and its popula- the central city itself, along with state and nation-
tion has grown modestly since 2000. But its poverty al issues. They are far less likely to be performing
rate, too, has grown considerably, and is now up to their watchdog role for suburbs, simply because, af-
29%. A significant share of the population is in a mo- fluent suburbs excepted, they have neither the staff
bile-home park inside the municipal limits.20 Last nor the audience to do so. So, too, a central city is
year, the towns police chief was embroiled in con- more typically the focus of national attention than
troversy over accusations of abusive behavior, and most suburbs. The murder crisis in Chicago is global
citizens for the town have petitioned for the state to news. The problems in suburban Harvey are not.
audit its finances.21 These disputes remain ongoing.
Central cities are often viewed as too big or too im-
Wilkinsburg, Pennsylvania (Pittsburgh). This portant to fail. State governments and their officials
suburb, immediately east of Pittsburgh, is losing are keenly aware of the biggest cities in the state and
populationdown 18.8% since 2000, to 15,586. what is happening in them. But someone like a gov-
Wilkinsburgs high poverty rate, 24.1%, is up 5.4 per- ernor can give attention only to a limited number of
centage points since 2000, and its inflation-adjusted places.
median household income, $22,763, has declined by
14.5%. Located in one of Americas whitest metro- It is much easier for suburban communities than
politan areas, Wilkinsburgs population is two-thirds a central city to persist in dysfunction without at-
black.22 Wilkinsburg is a candidate for merger with tracting outside attention that would prompt cor-
Pittsburgh. rective action. This generally happens only when
some extreme event causes people to start paying
Pine Lawn, Missouri (St. Louis). Pine Lawns attention, such as the controversy over the shooting
population, 3,592, is down 14.6% since 2000. Its of Michael Brown in Ferguson, Missouri, or the pay
poverty rate has not increased substantially since scandal in Bell, California.
2000 but is very high, at 37.6%. The small suburb
made national news in the wake of the Michael Concentrated poverty and racial isolation. A suburb
Brown shooting in Ferguson, for its municipal court, that becomes heavily poor and minority can face
which generates nearly half the citys revenues.23 severe economic, service-delivery, and fiscal prob-

Issue Brief
Mergers May Rescue Declining Suburbs 5

lems. But unlike similar city neighborhoods, which Former East Cleveland mayor Gary Norton made this
can draw on citywide resources to help provide ser- very comparison. Cleveland, he said in an interview:
vices, these suburbs have only their own resources.
In effect, municipal boundaries can isolate poor or has all of the assets and income-generating centers
marginalized communities. This is the case in East that a big city has. Think about the tall office build-
Cleveland, which is almost entirely black and has a ings and types of businesses that operate in those
very high poverty rate. There are 1.2 million subur- buildings. Law firms, professional services, profes-
ban residents living in census tracts with concentrat- sional sports teams, airports, all those things. Each
ed poverty (with a poverty rate in excess of 40%), up one of those highrise buildings generates millions
from about 400,000 in 2000. Many of these tracts of dollars in tax revenue for Cleveland. It is diverse
are located in inner-ring suburbs.27 enough to weather the storm of a tough economy,
even a tough 50 years. A smaller place can do very,
Lack of housing-stock diversity. Many inner suburbs very well if the right elements are within its borders,
have predominantly older Cape Cod or ranch-style or it can do very, very poorly if the right elements
housing that is dated and smaller than current market leave. The right elements left our borders, and
standards. The limited range of housing types limits without all the assets that a big city has, without
the number of potential buyers. Examples of these the diversification, thats a bad situation.28
types of towns would be Lakewood, California, and
Park Forest, Illinois, both of which were fully devel-
oped in a bit over a decade. Park Forest began as a
planned community that was announced in 1946; What Are the Options?
by 1960, it was effectively built out. A single type
of housing hardly means that a suburb will become When suburbs become troubled, the layer of govern-
troubled; but if the suburb does become troubled, a ment with oversight responsibility is the state because
turnaround is more difficult if the dominant housing municipalities are the creations of state government.
type is out of favor in the market. What happensor doesnt happennext?

Whats more, the housing and commercial develop- The default action is to take no action and allow trou-
ment in the older, inner-ring suburbs was largely bled municipalities, particularly ones that are not yet
produced turnkey by developers who also built most suffering an acute fiscal crisis, to continue without ma-
of the roads and installed other infrastructure. These terial assistance. To be fair, states rightly want to let
municipalities never had to develop expertise in the local governments function as designed and address
much more complex task of redevelopment, such as their problems as locally elected officials decide best.
land acquisition from multiple owners or establish- Given the risks of intervention, this can be a viable po-
ing public/private partnerships. litical strategy unless some crisis occurs, as in Fergu-
son. However, if troubles persist and worsen, or there
Lack of assets around which to revitalize. Subur- are indications of local government corruption or dys-
ban communities are often bedroom or postin- function, such deference can cross the line into neglect.
dustrial communities that lack the types of assets
around which central cities have rebuilt. For Rather than simple neglect, states can provide some
example, central cities are frequently the regional form of financial or other assistance. Indiana gave the
seat of government, either a county seat or state city of Gary a temporary exemption from property tax
capital; they have major institutions like universi- caps via the states Distressed Unit Appeals Board.29
ties and hospitals; they contain regional attractions This type of assistance may deal with short-term fiscal
such as zoos, museums, and sports teams; and often problems but not serious structural challenges.
they have legacy corporate headquarters. Consider
the impact of the world-renowned Cleveland Clinic Another possible state intervention might be a financial
on that city. Many suburbs have few major assets, control board or an emergency manager. That could
apart from retail centers or malls that are them- assist in resolving a crisis, but a control board doesnt
selves often troubled. have the means to address poverty, crime, and vacant

Issue Brief
Mergers May Rescue Declining Suburbs 6

housing and commercial structures. In Flint, Michi- larger county government. This option is not applica-
gan, a state-appointed emergency manager oversaw a ble in New England, where county governments often
change in the citys water system that resulted in lead do not exist.
contamination. This extreme failure will make any
future governor highly reluctant to order a state take- If a full merger is not possible for political or other
over via emergency manager or similar method. reasons, specific public services of neighboring
communities could be merged (e.g., fire protection)
The Flint experience also reveals that states and without merging overall governments. One example
municipalities have fundamentally different of this was the elimination of the police department
competencies. Theres no reason to believe that a state of Camden, New Jersey, in favor of police protection
government will be effective at delivering local services, from the county. This was done while Camden was
which differ substantially from what a state does. under state control.31

Nevertheless, if a communitys problems are purely Where deeply distressed or structurally challenged
financial, such as a heavy debt or unfunded pension suburbs are contiguous to a central city, states should
burden, or staffing levels that are too high relative to consider encouraging a merger. Ideally, this step
reduced population, some type of state-assisted or would be undertaken voluntarily by both govern-
mandated restructuring can potentially solve them. ments, with state incentives as the encouragement. A
For example, small Central Falls, Rhode Island, had an merger is not intended as a one-size-fits-all solution
$80 million unfunded pension and liability for retiree but rather as one tool among others.
health care. The state intervened and placed the city
in bankruptcy, reducing this liability, albeit at the cost Municipal consolidations in the form of city-county
of significant reductions to retiree pensions (includ- mergers have often been viewed as positives in the
ing fully vested pensions of existing retirees).30 Down- planning world. Examples such as Indianapolis
sizing services, on the other hand, can be a challenge Marion County, Indiana, and NashvilleDavidson
because many services are based on geographic extent County, Tennessee, are held up as having been instru-
more than population. mental in the subsequent growth of those regions.
But they may not be ideal for the problems afflict-
If a suburbs tax base cannot support minimum equi- ing troubled suburbs. Typically, city-county mergers
table levels of public services, state intervention is un- exclude existing municipalities; only the unincorpo-
likely to fix the problem. Whats needed in this case is rated county territory is merged into the consolidat-
an increase in the tax basean inflow of investment ed governmental entity. For example, in the merger
and higher-income residents. Many criticize this inflow of Louisville and Jefferson County, Kentucky, all the
as gentrification, but an invidious label cannot evade pre-consolidation Jefferson County suburbs still exist
the reality: communities losing the population and tax as independent municipalities.32
base that allow them to exist.
Moreover, city-county mergers typically do not deliver
the benefits promised. For example, they are touted as
reducing costs because of efficiencies from economies of
Mergers as a Solution scale. But unlike in a corporate merger, public employ-
for Insolvency ees are highly unlikely to lose their jobs or take a pay cut
in any merger. In Indianapolis, fire service was originally
excluded from its city-county merger; subsequently, the
Given the limits of other intervention options, state gov- Lawrence Township Fire Department merged with the
ernments should consider merging failing suburbs with Indianapolis Fire Department. Nobody lost his job, and
a stronger nearby government. A merger could be initi- some Lawrence Township firefighters received raises.33
ated voluntarily at the local level where state-enabling City-county mergers probably are not ideal for troubled
legislation exists. For suburban areas, one potential suburbs. Smaller-scale mergers with their contiguous
method is to disincorporate the failing municipality. center cities may be more promising for a number of
This would de facto merge the government with the reasons, including:

Issue Brief
Mergers May Rescue Declining Suburbs 7

Improved visibility and accountability. Perhaps For example, after the Indianapolis city-county merger
the least appreciated and most important benefit of of 1970, the area that would now be classified as inner
merging inner-ring suburbs into the central city is suburban provided a strong tax base to support a
aligning the fate of the community with a high-profile struggling inner city. Today, as thousands of new apart-
political leader who is under significant scrutiny from ments are being built downtown, city leaders hope that
the media and other important community leaders. a resurgent urban core will provide tax-base support
for those same now-aging inner suburban areas. The
Consider Chicago. The murder challenges in select same effect would be in play in smaller-scale mergers.
city neighborhoods are national and international
news. Mayor Rahm Emanuels entire legacy depends The central city is again also likely home to critical high-
on his ability to successfully address these challeng- economic-value assets like a major central business
es. Emanuel is held accountable not just by the large district, university, or medical center. A merger allows
newspapers and TV stations of a major media market; these truly regional assets to benefit a larger geography.
state and even national political figures are providing a
political check and balance. President Trump, a politi-
cian of the opposite political party, has commented on
Chicagos crime problems.34 The federal government is Overcoming Political
also providing assistance to Chicago in addressing these
problems, including sending in extra ATF agents.35 Obstacles
This level of scrutiny and assistance is much less The merger of any governments is typically politically
likely to occur for a troubled and dysfunctional difficult to achieve and often evokes fierce opposition;
inner-ring suburb. In Harvey, Illinois, aldermen it would be nave to suggest that merging suburbs into
collected 1,000 signatures on a petition asking for a central city would be easy. The recall of the mayor
state help in reigning in corruption back in 2015, but and city council president in East Cleveland after they
little action was taken.36 initiated merger discussions testifies to that.

While a merger does not guarantee that a suburbs History suggests a potential route to gaining public
problems will be solvedpoverty, crime, and so on are acceptance for mergers. Independent suburbs have
very difficult challengesit does provide much more tended to vote in favor of a merger when it is seen as
likelihood that attention will be focused on them. the best or only alternative for obtaining the public
services that residents desire. For example, Chicago
Service delivery alignment and expertise. Unlike historically grew partly by annexing suburbs. These
with direct state intervention, a municipal suburbs were unable to provide emerging public ser-
merger involves entities that deliver largely the vices such as sewerage, partly because they were at
same collection of services. Central-city mayors their statutory debt limit of 5% of assessed valuation.37
understand how to manage fire departments, plow In Morgan Park, residents approved annexation into
streets, maintain parks, and other services. So while Chicago to obtain a new high school, along with better
integrating a newly merged suburb would not be police and fire services.38 Low-quality street infra-
effortless, theres much more compatibility than structure was another motivator in some cases. The
there would be with state intervention. Ravenswood neighborhood in Chicago was originally
built without sidewalks, which were added after Lake
Demographic and housing-stock diversity and superi- View Township, an unincorporated area, was annexed
or assets. Because central-city neighborhoods were de- into the city.39
veloped in different eras, they feature different types of
housing and commercial buildings. They also are more Infrastructure today remains a critical factor in why
likely to have both affluent and poor neighborhoods. unincorporated areas agree to be annexed by expand-
This provides increased potential for overall stability as ing municipalities. Columbus became the largest city in
different types of housing and neighborhoods come in Ohio partly because it refused to extend water service
and out of favor. Cities also possess painfully acquired to new areas unless they agreed to be annexed.40 In
expertise in redeveloping struggling areas. recent years, the Indianapolis suburb of Carmel was

Issue Brief
Mergers May Rescue Declining Suburbs 8

promised $40 million in capital improvements as the need to be created and sold to the public to generate
lure for an 8.3-square-mile annexation.41 support for the merger.

Previous experience suggests that the most import- Historically, the merger of suburbs into a central
ant incentive to make mergers politically acceptable is city was common. Not today. There are several
improved public services, including some type of sub- contemporary examples of city-county consolidation
stantial capital investment. Capital investment is not Indianapolis and Nashville, among others. Also, many
likely to be forthcoming from central cities that have communities have merged or share fire or police
huge unfunded capital needs. Hence the state needs to services, including the examples above. In Indiana,
provide the funding where appropriate, as well as to the town of Zionsville successfully and voluntarily
finance the transition costs. If a city has lower aggre- merged with two surrounding townships in 2010.
gate taxes than the suburb in question, lower taxes may This was not a municipal merger per se since Indiana
be a lure. townships are not general-purpose governments, but
it does show that a voluntary merger can occur when
In East Cleveland, state auditor Dave Yost proposed conditions are right.
a $10 million state capital grant to be awarded upon
merger with Cleveland.42 This was not approved by the
legislature, however, so it did not represent a concrete
offer. Merger talks between the cities had not advanced Conclusion
to the point where specific service improvements in
East Cleveland were detailed when the mayor was re- Structurally challenged suburban municipalities that
called. This episode suggests that some type of state aid are physically contiguous to the central city of a region
and guarantee of service improvements is likely to be should consider merging with that central city.
required to win over suburban residents.
State governments should pass enabling legislation to
What would a merger provide the central city such allow municipalities to voluntarily plan and execute
that it would also agree? Central cities in many regions mergers. The Indiana Government Modernization Act
where this type of merger would be applicablefor of 2006 is an example.44
example, Chicago and Clevelandare far below their
population peak. The addition of former suburban Proposed mergers should clearly result in superior
territory would increase the central citys population public-service levels in the suburban municipality and
heft and scale. Many central-city leaders prefer some no reduction of services in the central city. The specif-
type of regional governance, and mergers are a form of ics of improved services need to be documented and
building that governance incrementally. Some voices disseminated broadly in the community.
are already calling for exactly this sort of merger.43
The state needs to provide an incentive in the form of
Some central-city mayors may be hesitant to take on a state-financed capital-improvement program in the
troubled suburbs. But central cities often receive spe- suburban municipality to be merged, contingent on the
cial-purpose assistance from the state that other com- merger taking place.
munities do not routinely obtain, such as provisions
for stadium or transit taxes. To the extent that central The state may need to absorb some suburban legacy costs
cities want to be perceived as good regional citizens, (pensions and debt) to ensure central-city participation.
they have an incentive to agree to a merger, particular-
ly when the merger is strongly supported by the state The merger would ideally be done voluntarily, but an
government. As an additional incentive, the state may involuntary merger could be considered where state
need to absorb some legacy costs such as unfunded receivership, bankruptcy, or other extreme failure
suburban pensions or debt, to avoid loading the burden would otherwise occur.
onto the central city.

This is a broad outline. Specifics of the benefits case

for both the central city and the merging suburb would

Issue Brief
Mergers May Rescue Declining Suburbs 9

Appendix: Contiguous Suburbs of Select Midwestern and Northeastern Cities

Population Change in real median
change since Poverty Change in poverty household income since
Suburb State Central city 2000 rate rate since 2000 2000
Kenmore NY Buffalo -7.8% 8.6% 3.5% -13.9%
Lackawanna NY Buffalo -6.3% 24.4% 7.6% -15.2%
Sloan NY Buffalo -5.4% 11.3% -0.2% 0.2%
Tonawanda NY Buffalo -75.9% 10.1% 2.8% -7.4%
Alsip IL Chicago -2.9% 10.2% 3.6% -21.4%
Bedford Park IL Chicago 1.4% 11.9% 9.8% -23.2%
Bensenville IL Chicago -11.3% 13.9% 7.4% -20.7%
Blue Island IL Chicago -0.3% 23.3% 10.0% -27.4%
Burbank IL Chicago 3.5% 13.2% 8.0% -24.3%
Burnham IL Chicago 0.0% 20.8% 11.0% -17.7%
Calumet City IL Chicago -6.0% 22.2% 10.1% -30.2%
Calumet Park IL Chicago -8.6% 17.4% 5.8% -26.9%
Cicero IL Chicago -3.1% 21.4% 5.9% -22.5%
Des Plaines IL Chicago -1.0% 7.4% 2.9% -14.5%
Dolton IL Chicago -10.6% 24.8% 16.5% -33.5%
Elk Grove Village IL Chicago -5.2% 4.8% 2.8% -22.3%
Elmwood Park IL Chicago -3.1% 9.2% 4.0% -16.4%
Evanston IL Chicago 0.9% 13.4% 2.4% -12.4%
Evergreen Park IL Chicago -5.7% 8.2% 4.0% -15.3%
Forest View IL Chicago -12.1% 2.8% -2.3% -19.6%
Franklin Park IL Chicago -6.8% 10.8% 3.7% -15.6%
Harwood Heights IL Chicago 3.0% 9.8% 5.1% -21.6%
Hometown IL Chicago -3.8% 6.7% 3.7% -19.0%
Lincolnwood IL Chicago 1.4% 6.0% 3.1% -6.7%
Merrionette Park IL Chicago -6.7% 7.1% -0.4% -10.7%
Niles IL Chicago -1.5% 11.6% 6.2% -25.2%
Norridge IL Chicago -0.6% 10.7% 6.8% -14.2%
Oak Lawn IL Chicago 1.8% 10.8% 5.4% -16.9%
Oak Park IL Chicago -1.4% 8.9% 3.4% -4.6%
Park Ridge IL Chicago -0.7% 4.4% 1.9% -12.9%
River Forest IL Chicago -4.7% 4.4% 1.7% -21.7%
River Grove IL Chicago -5.0% 13.0% 7.1% -18.2%
Riverdale IL Chicago -11.0% 28.2% 9.8% -40.6%
Rosemont IL Chicago -1.3% 24.6% 9.6% -2.3%
Schiller Park IL Chicago -1.3% 11.6% 2.4% -16.8%
Skokie IL Chicago 1.5% 11.3% 5.9% -17.8%
Stickney IL Chicago 9.3% 7.6% 1.8% -15.2%

Issue Brief
Mergers May Rescue Declining Suburbs 10

Population Change in real median

change since Poverty Change in poverty household income since
Suburb State Central city 2000 rate rate since 2000 2000
Summit IL Chicago 6.4% 20.5% 4.3% -22.3%
Addyston OH Cincinnati -7.3% 16.0% 4.4% -23.6%
Amberley OH Cincinnati 5.2% 3.6% 0.1% 0.2%
Arlington Heights OH Cincinnati -17.8% 15.3% 2.2% -9.9%
Cheviot OH Cincinnati -8.1% 23.6% 16.0% -20.8%
Elmwood Place OH Cincinnati -18.7% 31.2% 12.2% -33.0%
Fairfax OH Cincinnati -12.2% 7.3% 2.3% -11.0%
Golf Manor OH Cincinnati -10.5% 16.2% 5.5% -28.4%
Lockland OH Cincinnati -7.5% 27.0% 9.9% -15.9%
Madeira OH Cincinnati 1.4% 4.2% 2.9% -1.9%
Mariemont OH Cincinnati 0.6% 2.4% -2.6% 11.5%
North College Hill OH Cincinnati -7.5% 18.9% 10.2% -26.0%
Norwood OH Cincinnati -8.3% 22.0% 9.1% -15.4%
Reading OH Cincinnati -8.6% 16.2% 8.9% -25.0%
Silverton OH Cincinnati -8.1% 13.1% 3.5% -27.0%
St. Bernard OH Cincinnati -11.7% 19.2% 10.5% -12.5%
The Village of Indian Hill OH Cincinnati -1.4% 1.2% -1.2% -8.5%
Wyoming OH Cincinnati 3.1% 2.2% 0.9% -11.8%
Bratenahl OH Cleveland -12.9% 7.5% 3.3% -24.8%
Brook Park OH Cleveland -11.9% 9.5% 4.9% -27.2%
Brooklyn OH Cleveland -6.5% 13.4% 6.8% -17.3%
Brooklyn Heights OH Cleveland -2.4% 5.2% 3.0% -11.2%
Cleveland Heights OH Cleveland -10.7% 19.3% 8.7% -20.1%
Cuyahoga Heights OH Cleveland 2.2% 17.5% 11.8% -18.1%
East Cleveland OH Cleveland -36.7% 42.6% 10.6% -32.8%
Euclid OH Cleveland -10.2% 20.9% 11.2% -28.9%
Fairview Park OH Cleveland -7.1% 9.2% 5.1% -24.5%
Garfield Heights OH Cleveland -9.2% 18.7% 10.1% -29.6%
Lakewood OH Cleveland -11.2% 16.5% 7.6% -21.1%
Linndale OH Cleveland 50.4% 31.4% 15.7% 9.9%
Maple Heights OH Cleveland -14.1% 20.8% 14.9% -35.9%
Newburgh Heights OH Cleveland -13.0% 27.3% 15.3% -36.4%
Parma OH Cleveland -7.3% 11.2% 6.2% -19.1%
Shaker Heights OH Cleveland -6.7% 8.6% 1.8% -14.4%
South Euclid OH Cleveland -8.0% 8.4% 3.9% -13.1%
Warrensville Heights OH Cleveland -12.4% 19.8% 8.4% -33.4%
Dearborn MI Detroit -3.4% 28.9% 12.8% -25.1%
Dearborn Heights MI Detroit -4.3% 20.1% 14.0% -34.8%

Issue Brief
Mergers May Rescue Declining Suburbs 11

Population Change in real median

change since Poverty Change in poverty household income since
Suburb State Central city 2000 rate rate since 2000 2000
Eastpointe MI Detroit -4.1% 22.1% 15.7% -36.4%
Ecorse MI Detroit -18.2% 33.1% 10.5% -27.0%
Ferndale MI Detroit -9.1% 17.0% 8.8% -20.8%
Grosse Pointe MI Detroit -8.5% 2.8% 0.3% -14.4%
Grosse Pointe Farms MI Detroit -6.2% 3.8% 1.7% -18.5%
Grosse Pointe Park MI Detroit -10.6% 6.1% 2.1% -16.7%
Grosse Pointe Woods MI Detroit -8.4% 4.6% 2.2% -17.5%
Hamtramck MI Detroit -5.3% 47.3% 20.4% -37.1%
Harper Woods MI Detroit -3.7% 13.5% 8.4% -26.5%
Hazel Park MI Detroit -12.8% 27.1% 14.8% -34.9%
Highland Park MI Detroit -35.0% 49.3% 10.9% -31.5%
Lincoln Park MI Detroit -8.2% 19.9% 12.2% -31.9%
Melvindale MI Detroit -3.8% 27.1% 15.6% -38.6%
Oak Park MI Detroit -0.5% 16.2% 6.9% -31.4%
River Rouge MI Detroit -24.6% 41.4% 19.4% -36.8%
Southfield MI Detroit -6.6% 15.2% 7.8% -33.1%
Warren MI Detroit -2.3% 19.7% 12.3% -31.3%
Avondale MO Kansas City -12.9% 12.6% 2.4% 0.0%
Belton MO Kansas City 7.2% 14.7% 6.8% -15.6%
Birmingham MO Kansas City -8.4% 8.0% 2.9% 34.3%
Claycomo MO Kansas City 16.1% 25.6% 20.9% -34.4%
Ferrelview MO Kansas City 6.7% 29.0% 23.4% -36.3%
Gladstone MO Kansas City 2.8% 12.1% 7.3% -20.3%
Grandview MO Kansas City 1.2% 18.3% 9.9% -27.3%
Houston Lake MO Kansas City -13.4% 6.9% 3.0% 4.8%
Independence MO Kansas City 3.3% 17.9% 9.3% -19.5%
Lake Waukomis MO Kansas City -0.8% 4.6% 3.6% -8.4%
Lees Summit MO Kansas City 35.9% 6.5% 2.6% -9.4%
Liberty MO Kansas City 16.7% 8.8% 3.8% -12.9%
Loch Lloyd MO Kansas City N/A 0.8% N/A N/A
North Kansas City MO Kansas City -7.2% 7.4% -5.2% -4.4%
Northmoor MO Kansas City -17.8% 16.8% 3.4% 11.4%
Oaks MO Kansas City -0.7% 21.1% 19.0% -16.8%
Oakwood MO Kansas City -0.5% 11.8% 11.8% -19.8%
Parkville MO Kansas City 60.5% 11.5% 5.0% 21.1%
Platte City MO Kansas City 26.0% 14.1% 7.8% -12.9%
Platte Woods MO Kansas City -14.8% 4.1% 2.4% -18.0%
Pleasant Valley MO Kansas City -7.6% 12.2% 7.6% -20.2%

Issue Brief
Mergers May Rescue Declining Suburbs 12

Population Change in real median

change since Poverty Change in poverty household income since
Suburb State Central city 2000 rate rate since 2000 2000
Randolph MO Kansas City 17.0% 10.7% 10.7% N/A
Raymore MO Kansas City 87.0% 3.9% 0.7% -6.6%
Raytown MO Kansas City -3.7% 13.9% 8.9% -17.5%
River Bend MO Kansas City 0.0% 0.0% 0.0% N/A
Riverside MO Kansas City 8.3% 19.6% 9.3% -34.3%
Smithville MO Kansas City 71.5% 5.3% 1.4% -3.8%
Sugar Creek MO Kansas City -13.9% 15.5% 4.7% -37.0%
Unity Village MO Kansas City -42.9% 22.4% 10.5% -13.0%
Weatherby Lake MO Kansas City 2.7% 3.9% 2.3% -11.5%
Brown Deer WI Milwaukee -1.3% 8.4% 4.8% -23.5%
Butler WI Milwaukee -3.2% 10.2% 7.7% -12.9%
Cudahy WI Milwaukee -1.2% 16.2% 8.0% -18.5%
Franklin WI Milwaukee 22.5% 6.1% 3.4% -19.9%
Germantown WI Milwaukee 9.7% 4.8% 2.3% -10.8%
Glendale WI Milwaukee -4.4% 9.6% 5.6% -20.9%
Greenfield WI Milwaukee 3.9% 9.8% 5.1% -18.6%
Menomonee Falls WI Milwaukee 12.6% 3.7% 1.5% -10.9%
Mequon WI Milwaukee 10.4% 3.6% 1.9% -20.8%
Oak Creek WI Milwaukee 26.1% 6.8% 3.8% -14.5%
River Hills WI Milwaukee -2.4% 1.6% -0.1% -31.8%
Shorewood WI Milwaukee -2.9% 10.2% 3.5% -3.8%
St. Francis WI Milwaukee 9.3% 11.9% 5.4% -17.9%
Wauwatosa WI Milwaukee 1.4% 6.4% 2.6% -10.3%
West Allis WI Milwaukee -1.9% 14.3% 7.8% -19.2%
West Milwaukee WI Milwaukee -0.6% 24.2% 12.7% -33.4%
Whitefish Bay WI Milwaukee -1.3% 4.2% 1.0% -10.2%
Atlantic Beach NY New York -3.9% 3.2% -2.4% -8.4%
Bellerose NY New York -0.2% 2.7% 1.7% 24.7%
Floral Park NY New York -0.1% 2.7% -0.4% -3.7%
Great Neck Estates NY New York 2.9% 0.6% -1.7% -12.6%
Lake Success NY New York 11.1% 5.7% 3.8% -9.1%
Lawrence NY New York 0.6% 1.6% -4.6% -5.7%
Mount Vernon NY New York -0.1% 15.3% 1.0% -12.8%
New Rochelle NY New York 10.2% 11.1% 0.7% -11.2%
Pelham Manor NY New York 1.8% 2.8% -1.5% 18.0%
Valley Stream NY New York 3.6% 7.5% 4.0% 0.2%
Yonkers NY New York 2.4% 16.7% 1.2% -6.9%
Aspinwall PA Pittsburgh -7.5% 6.1% 0.1% 7.5%

Issue Brief
Mergers May Rescue Declining Suburbs 13

Population Change in real median

change since Poverty Change in poverty household income since
Suburb State Central city 2000 rate rate since 2000 2000
Baldwin PA Pittsburgh -1.3% 8.1% 2.8% -7.3%
Bellevue PA Pittsburgh -6.8% 15.8% 3.6% -10.8%
Brentwood PA Pittsburgh -10.0% 8.3% 2.2% -1.7%
Castle Shannon PA Pittsburgh -3.8% 15.0% 7.3% -12.2%
Crafton PA Pittsburgh -13.2% 4.3% -2.7% -3.2%
Dormont PA Pittsburgh -9.9% 6.6% -1.5% 1.2%
Etna PA Pittsburgh -14.2% 11.5% 2.3% 1.6%
Fox Chapel PA Pittsburgh -1.8% 4.5% -0.3% -26.0%
Green Tree PA Pittsburgh 4.4% 4.6% 1.8% -14.1%
Homestead PA Pittsburgh -11.4% 24.0% -2.6% 9.7%
Ingram PA Pittsburgh -12.5% 12.3% 4.1% -5.8%
McKees Rocks PA Pittsburgh -10.1% 21.9% -3.4% -8.4%
Millvale PA Pittsburgh -9.3% 26.1% 12.9% -19.3%
Mount Oliver PA Pittsburgh -16.3% 36.6% 17.3% -29.2%
Munhall PA Pittsburgh -8.9% 8.7% -3.2% 2.4%
Rosslyn Farms PA Pittsburgh -8.6% 3.2% -2.6% 1.6%
Sharpsburg PA Pittsburgh -6.4% 27.2% 10.6% -3.6%
Swissvale PA Pittsburgh -9.2% 19.8% 4.5% -17.1%
West Homestead PA Pittsburgh -13.2% 9.0% -4.7% 5.8%
West Mifflin PA Pittsburgh -11.3% 13.1% 2.9% -1.9%
Whitehall PA Pittsburgh -4.8% 10.2% 3.8% -8.6%
Wilkinsburg PA Pittsburgh -18.8% 24.1% 5.4% -14.5%
Bellefontaine Neighbors MO St. Louis -5.0% 26.8% 20.3% -37.4%
Clayton MO St. Louis 29.6% 8.2% 0.6% 2.0%
Hillsdale MO St. Louis 5.6% 41.2% 10.5% -26.0%
Jennings MO St. Louis -4.6% 29.9% 10.9% -29.1%
Mackenzie MO St. Louis -3.6% 3.3% -1.9% 18.0%
Maplewood MO St. Louis -14.7% 19.6% 5.5% -14.7%
Pine Lawn MO St. Louis -14.6% 37.6% 0.7% -14.8%
Richmond Heights MO St. Louis -12.6% 8.3% 1.0% -4.8%
Riverview MO St. Louis -10.9% 22.1% 4.8% -24.4%
Shrewsbury MO St. Louis -7.5% 9.5% 0.8% -14.0%
University City MO St. Louis -7.3% 17.6% 2.9% -10.6%
Wellston MO St. Louis -6.8% 55.3% 16.2% -45.2%
Source: Population figures and changes calculated from Census 2000 and the 2016 Census Population Estimates Program Release. Poverty rates and changes calculated from total individual poverty
in Census 2000 SF3 Table QT-P34 and American Community Survey 20112015 5-Year Survey Table S1701. Real median income and changes calculated from Census 2000 SF3 Table P53 (1999
calendar year income) and American Community Survey 201115 5-Year Survey Table S1901, inflation adjusted using the Consumer Price Index.

Issue Brief
Mergers May Rescue Declining Suburbs 14

Endnotes
Research assistance provided by Connor Harris.

1 Census Bureau Reports There Are 89,004 Local Governments in the United States, U.S. Census Bureau, Aug. 30, 2012.
2 John Rennie Short, Bernadette Hanlon, and Thomas V. Vicino, The Decline of Inner Suburbs: The New Suburban Gothic in the United States,
Geography Compass 1, no. 3 (2007): 64156. See also Robert Puentes and David Warren, One Fifth of America: A Comprehensive Guide to Americas
First Suburbs, Brookings Institution, Feb. 1, 2006.
3 All population figures derived from U.S. Census Bureau, Census 2000 and Population Estimates Program Vintage 2016 estimates, unless otherwise
noted. Note as well that all census data referenced in this paper are available through the American Fact Finder: factfinder.census.gov.
4 Erick Trickey, Will Cleveland Merge with the City Next Door? Next City, Sept. 12, 2016.
5 All poverty data calculated from total individual poverty in Census 2000 SF3 Table QT-P34 and American Community Survey 20112015 5-Year Survey
Table B17001, unless otherwise noted.
6 Ibid.
7 Gary A. Norton, Jr., letter to Ohio State Tax Commissioner Joseph W. Testa, Apr. 27, 2016.
8 Bliss Davis, ODOT Lends East Cleveland Salt Trucks Since City Hasnt Fixed Theirs Yet, Cleveland Scene, Dec. 15, 2016.
9 Nick Castele, Oakwood Village Donates Ambulance to East Cleveland After Others Break Down, WCPN-FM, Oct. 3, 2016.
10 Jeremy Pelzer, Ohios Traffic Cameras Down, But Not Out Following New Restrictions, Cleveland Plain Dealer, Dec. 28, 2015.
11 Unless otherwise noted, real median income from Census 2000 SF3 Table P53 and American Community Survey 20112015 5-Year Survey Table
S1901, inflation-adjusted using the Consumer Price Index. Value for Census 2000 is income in calendar year 1999.
12 Aamer Madhani, As Sears Falters, Shadow Darkens over American Malls, USA Today, Mar. 24, 2017.
13 Calumet City Illinois Sales Tax Rate, TaxRates.com.
14 Marc Joffe, Illinois Candidates for Municipal Bankruptcy, The Bond Buyer, May 26, 2015.
15 Dolton Village, Illinois, U.S. Census Bureau, Quick Facts.
16 Carrie Blackmore Smith, Tiny Elmwood Place Facing a Grim Future, Cincinnati Enquirer, Dec. 27, 2013.
17 City of Norwood Placed in Fiscal Emergency, Ohio Auditor of State, Oct. 6, 2016.
18 GM Plant Closing Shakes Ohio Town, Associated Press, Aug. 27, 1987.
19 Dan Horn, Whats the Matter with Norwood? Cincinnati Enquirer, Feb. 28, 2017.
20 Maverick Commercial Arranges $1.25 Million Loan for Missouri Properties, Rebusiness Online, Feb. 15, 2010.
21 Betsy Webster and Nick Sloan, Embattled Ferrelview Police Chief Defends Himself as Controversy Continues, KCTV-TV, June 14, 2016.
22 Wilkinsburg Borough, Pennsylvania, U.S. Bureau of the Census, Quick Facts.
23 Radley Balko, New Report Details the Disastrous Municipal Court System in St. Louis County, Washington Post, Oct. 28, 2014.
24 Robert Patrick, Former Pine Lawn Mayor Sentenced to 33 Months in Prison for Extortion, St. Louis Post-Dispatch, July 6, 2015.
25 Robert Patrick, Former Pine Lawn Police Lieutenant Gets 51 Months in Federal Prison, St. Louis Post-Dispatch, Oct. 6, 2016.
26 Valerie Schremp, Pine Lawn Votes to Dissolve Police Department, St. Louis Post-Dispatch, Mar. 11, 2016.
27 Elizabeth Kneebone and Natalie Holmes, U.S. Concentrated Poverty in the Wake of the Great Recession, Brookings Institution, Mar. 31, 2016.
28 Alexia Fernndez Campbell, A Suburb on the Brink of Bankruptcy, The Atlantic, June 8, 2016.
29 Dan Carden, Gary Granted Final Tax Caps Exemption, The Times of Northwest Indiana, Apr. 13, 2011.
30 Hilary Russ, Bankruptcy Saves Tiny Rhode Island City, but Leaves Scars, Reuters, Sept. 3, 2012.
31 Mike Maciag, Why Camden, N.J., the Murder Capital of the Country, Disbanded Its Police Force, Governing, June 2014.
32 H. V. Savitch and Ronald K. Vogel, Suburbs Without a City: Power and City-County Consolidation, Urban Affairs Review 39, no. 6 (July 2004): 758
90.
33 John Tuohy, Township Officials Fume over Indianapolis Fire Merger Bill, Indianapolis Star, Feb. 11, 2014.
34 Leonor Vivanco, Trump Suggests Chicago Could Solve Crime Problem in a Week if Cops Got Tougher, Chicago Tribune, Aug. 23, 2016.
35 Heather Cherone, Feds Finally Send Help to Chicago to Fight ViolenceNew Van to Track Guns, DNA Chicago, June 27, 2017.
36 As Harvey Suffers Corruption, No Ones Stepping in to Help, Chicago Tribune, Dec. 24, 2015.
37 Annexation, Encyclopedia of Chicago.
38 Morgan Park, Encyclopedia of Chicago.

Issue Brief
Mergers May Rescue Declining Suburbs 15

39 Ravenswood, Encyclopedia of Chicago.

40 Alexander Tebbens, Annexation and Mayor Sensenbrenner: The Story of How Columbus Grew to Be the Largest City in Ohio, Teaching Cleveland
Digital, Dec. 6, 2013.
41 Carmel Finishes Annexation of Southwest Clay, Associated Press, July 27, 2010.
42 Jackie Borchardt, Ohio Proposes Paying $10 million to Help East ClevelandCleveland Merger, Cleveland Plain Dealer, Apr. 1, 2016.
43 Edward McClelland, Chicago Should Annex Adjoining Suburbs, Chicago Tribune, Apr. 13, 2017.
44 Alan S. Townsend, Government Modernization Act, Indiana Code 36-1.5-1, July 8, 2010.

Issue Brief
Abstract
Many of the so-called inner-ring, or first-tier, suburbs next to Americas central
cities are in trouble, with declining population and development, and rising rates
of poverty. As these municipalities become progressively poorer, they are less able
to finance public services without tax increases, which drives away people and
business, which further reduces the tax base. If these fiscal conditions are paired
with poor governance and corruption, a turnaround can be especially difficult.
Virtually all options for addressing inner-ring-suburb challengesneglect, state
subsidies, state interventioncome with major drawbacks. However, one option has
not received the attention it deserves: a merger with the adjacent central city.
Local and state leaders should not wait until an inner-ring suburbs financial
situation reaches a crisis state before pursuing this option. Instead:
State governments should pass enabling legislation to allow municipalities to
voluntarily plan and execute mergers. The Indiana Government Modernization
Act of 2006 is an example.
Proposed mergers should clearly result in superior public-service levels in the
suburban municipality and no reduction of services in the central city.
State governments need to provide an incentive in the form of a state-financed
capital-improvement program in the suburban municipality to be merged,
contingent on the merger taking place.
The state may need to absorb some suburban legacy costs (pensions and debt) to
ensure central-city participation.
The merger would ideally be done voluntarily, but an involuntary merger could be
considered where state receivership, bankruptcy, or other extreme failure would
otherwise occur.