About the Industry
State and local governments provide their constituents with vital services, such as transportation, public safety, health care, education, utilities, and courts. Excluding education and hospitals, State and local governments employ about 7.9 million workers, placing them among the largest employers in the economy. Seven out of 10 of these employees work for local governments, such as counties, cities, special districts, and towns. In addition to these 7.9 million workers, large numbers of State and local workers work in public education. These workers form a large part of the educational services industry, which is discussed elsewhere in the Career Guide. Many State and local workers also work in public hospitals, which are included in the health care industry elsewhere in the Career Guide.
In addition to the 50 State governments, there are about 87,500 local governments in 2002, according to the U.S. Census Bureau. These include about 3,000 county governments; 19,400 municipal governments; 16,500 townships; 13,500 school districts; and 35,100 special districts. Illinois had the most local government units, with more than 6,900; Hawaii had the fewest, with 20.
In many areas of the country, citizens are served by more than one local government unit. For example, most States have counties, which may contain various municipalities such as cites or towns, but which also often include unincorporated rural areas. Townships, which do not exist in some States, may or may not contain municipalities and often consist of suburban or rural areas. Supplementing these forms of local government, special district government bodies are independent, limited purpose governmental units that usually perform a single function or activity. For example, a large percentage of special districts manage the use of natural resources. Some provide drainage and flood control, irrigation, and soil and water conservation services.
The Council of State Governments reports that State and local government's responsibilities were augmented in the 1990s through “devolution,” the practice through which the Federal Government turns over to State and local governments the development, implementation, and management of programs. Welfare reform typifies devolution in practice, with States receiving considerable leeway to devise programs that meet their needs as a result of the 1996 Congressional reform act that provided block grants to States. As the relationship between levels of government continues to change in the coming decade, so will the nature of services provided by State and local governments.