Local Government Authority - Home Rule & Dillon's Rule

The Constitution of the United States of America does not mention local governments.  Local governments are created by and regulated by the states.  This means that to speak about cities or other forms of local government in the United States is to speak about fifty different legal and political situations.  The states outline the powers of municipal governments in charters.  There may be:

• special or specific charters;
• general or classified charters (in which the rules may apply to a class of cities, often grouped by population size); or
• home rule charters.

Generally, cities in a "home rule" state have greater autonomy, while cities in a "Dillon's rule" state are more restricted in their powers. However, in Dillon's Rule states, legislatures retain the power to grant localities autonomy.  Conversely, legislatures in home rule states have the power to restrict localities from engaging in certain practices.  The state municipal leagues can provide information about the form of charter provided in the state constitutions.

Home Rule 

Home rule is a delegation of power from the state to its sub-units of governments (including counties, municipalities, towns or townships, or villages).  That power is limited to specific fields, and subject to constant judicial interpretation.  Home rule creates local autonomy and limits the degree of state interference in local affairs. 

The powers and limits of home rule authority for local governments are defined state-by-state.  There is no one national standard that defines the powers engendered in home rule status.  State provisions for home rule by its local government entities can be defined by the state's constitution and/or statutes enacted by its legislature.  Not all cities make use of the discretionary powers of home rule that are provided by their charter.   Functional powers are the most frequently used and expanded.
 
There are four primary areas in which "home rule" powers are exercised by governments:

• Structural -- power to choose the form of government, charter and enact charter revisions;
• Functional -- power to exercise powers of local self government; sometimes qualified as "broad functional" or "limited functional" home rule with varying degrees of autonomy;
• Fiscal -- authority to determine revenue sources, set tax rates, borrow funds, and other related activities; and
• Personnel -- authority to set employment rules and conditions ranging from remuneration to collective bargaining.

Dillon's Rule

One court decision, referred to as "Dillon's rule" has been applied to municipal powers in many states.   Dillon's rule is derived from written decision by Judge John F. Dillon of Iowa in 1868.  It is a cornerstone of American municipal law.  It maintains that a political subdivision of a state is connected to the state as a child is connected to a parent.  Dillon's Rule is used in interpreting state law when there is a question of whether or not a local government has a certain power.  Dillon's rule narrowly defines the power of local governments.

The first part of Dillon's rule states that local governments have only three types of powers:

• those granted in express words;
• those necessarily or fairly implied in or incident to the powers expressly granted; and
• those essential to the declared objects and purposes of the corporation, not simply convenient, but indispensable.

The second part of Dillon's rule states that if there is any reasonable doubt whether a power has been conferred on a local government, then the power has NOT been conferred.  This is the rule of strict construction of local government powers.

Authority by State

Thirty-nine states employ Dillon's rule to define the power of local governments.  Of those 39 states, 31 apply the rule to all municipalities and eight appear to use the rule for only certain municipalities.

The following 31 states are Dillon's rule states:
Arizona, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Kentucky, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Texas, Vermont, Virginia, West Virginia, Washington, Wisconsin, Wyoming

The following 8 states are Dillon's rule states, but only for certain types of municipalities:
Alabama, California, Colorado, Illinois, Indiana, Louisiana, Tennessee

The following 10 states are not Dillon's rule states:
Alaska, Iowa, Massachusetts, Montana, New Jersey, New Mexico, Ohio, Oregon, South Carolina, Utah

Conflicting authority:
The state of Florida has conflicting authority.

Sources

Clay Wirt. "Dillon's Rule."  Virginia Town & City. August 1989, vol. 24 no. 8, pp 12-15.

Richardson, Jesse J., Jr., et al., “Is Home Rule the Answer?  Clarifying the Influence of Dillon’s Rule on Growth Management.”  Washington, D.C.: Brookings Institution, January 2003. 

United States Advisory Commission on Intergovernmental Relations. Measuring Local Discretionary Authority. M-131. Washington, DC: U. S. Advisory Commission on Intergovernmental Relations, 1981.

United States Advisory Commission on Intergovernmental Relations. State Laws Governing Local Government Structure and Administration. M-186.  Washington, DC: U. S. Advisory Commission on Intergovernmental Relations,1993. 

The Urban Politics Dictionary. Santa Barbara, CA: ABC-CLIO, 1990.