Interest arbitration and ability to pay1. U.S. Public sector experience

The article describes how arbitrator actually resolve ability-to-pay issues; it is not a prescription of how they should. It notes that some arbitrators accept the allocations of funds in governmental budgets as definitive, but that a majority critically assess the accuracy of revenue estimates and the reasonableness of budgeted expenditure priorities and allocations. Nonetheless, arbitrators are reluctant to rely upon ability-to-pay arguments unless well-substantiated.