A body of recent research on local government finances and service delivery points to opportunities for cities, townships, boroughs and counties to improve the quality of basic services such as police, fire protection and public works, and to reduce costs over the long term. Fiscal stress has led increasing numbers of communities to explore options for inter-jurisdictional cooperation to increase efficiency and maintain high-quality services. But outdated and unnecessary laws and restrictions on local governments are an obstacle to innovation. New policies are needed to help local governments deliver and pay for shared services.