An area of particular concern and attention is
local government borrowing and use of debt to
pa y for expenditures. M any state provisions regulate
local government borrowing based on the purpose,
amount, and term of debt. Detailed conditions exist
for both long and short term debts. Many states
en courage local governments to institute capital budgets and to link long-range capital planning to managing debt. The particular processes and steps that
stat es establish for local governments to en act
budgets or borrow funds are often based on administrative and good government reform movements
or are instituted by stat es in response to problems
an d scandals