The reality of shrinking cities has forced public officials to chart a new course for the city. The purpose of municipal government has not changed, but the focus has changed dramatically. A reorientation towards shrinking as people and jobs leave a city from the previous orientation towards economic development and growth is the latest move to create sustainable cities as revenues decrease and expenditures increase. This paper includes the literature on shrinking cities around the world particularly in the postindustrial context. Shrinking cities in the United States are focused on particularly the right-sizing paradigm in the American context. Right-sizing strategies are clearly delineated in this paper in an effort to understand this paradigm in a more comprehensive fashion. These strategies are quantified and a linear mixed model panel analysis is done on cities that are shrinking and right-sizing and the impacts on the fiscal health of the city. The analysis reveals positive impacts of some right-sizing strategies.