After the onset of the Great Recession in 2008, local governments across the country faced some of the worst financial challenges since the 1930s. Some communities exacted drastic across the board budget cuts and wholesale layoffs. Others eliminated entire departments and contracted out vital services. Many cities found it necessary to claw back employee benefits packages negotiated during better times. A few cities failed to adjust and were forced into municipal bankruptcy. Looking back at that difficult period, we can see that some localities were better able than others to address the crisis. In those communities, local leaders approached their finances with creative and innovative ideas. Some attempted to coordinate efforts among multiple actors to more efficiently and affordably provide services. Others refashioned institutions, core assumptions, and existing financial decision-making processes to meet pressing public service needs. These leaders possessed not only financial skills but also the insight to recognize the need to adopt leadership strategies and new institutional design principles to meet the new financial realities facing their communities.[…]