The goal of this public economics course is to improve understanding of the nature of and potential solutions to the problems with which state and local governments grapple. Key issues include economically depressed neighborhoods and regions, subpar outcomes for students in public K-12 schools, and budget deficits facing cities and other jurisdictions. The class is lecture-based with opportunities in each class session for discussion and debate. There are two group assignments in which students must take the local policy environment into account when making a strategic choice for a firm, which is deciding between two cities for an expansion or relocation. There is a final exam. The course is related to KPPI 470 in that both courses are courses in public economics; KPPI 470 focuses on federal policy and KPPI 480 focuses on state and local policy.