During the midseventies, local governments in both urban and rural areas were able to increase their expenditures while improving their fiscal condition by reducing property taxes and government debt. However, the fiscal conditions of nonmetro governments improved less than did metro governments. Fiscal conditions may have actually deteriorated in isolated, sparsely populated areas, where government fiscal problems are comparable in some respects with those of large central cities. Although most nonmetro governments can handle their own fiscal problems, Federal, State, and local government policies may be implemented to relieve the relatively severe fiscal problems of totally rural areas.