For a good visible example of why I say local government consolidation is needed, not necessarily 'outsourcing', take a look at the NYT article on Maywood.
Question: How many other cities are strewn around and about it?
Question: What county underlies them, or those in adjacent counties, say a stone's throw away, fighting or losing the annexation wars?
On the other hand, how many sparsely populated places have the same number of counties as densely populated ones? It goes bsck to transportation and communication constraints, and other things, in the 16 through 19th Centuries.
Take a look at the late Robert Lorch's book, State and Local Politics.
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