Agenda - 01-10-1994 - Laserfiche WebLink

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Planners and t developers are ' becoming .,creases result not because nonresi- 1 section;and dential development increases costs i increasingly ■ increased expenditures for social r but because residents take advantage ( services. of the opportunity to increase services ; sophisticated In their at relativeiv little cost to themselves. f i Conclusion Indeed,our preliminary investigation i understanding of the In response to the original study, the into this hypothesis shows, for exam- interrelatedness of all Various critiques,and our own anal,- ple, that school districts whose tax sis,the Dupage Count, Regional Plan- base is disproportionately nonresiden- forms of development. I ning Commission voted to establish an f tial spend more per pupil than other impartial task force. At this time, the districts regardless of total assessed task force's mandate is still unclear,al- value per pupil. though it will likeh,include a broader collar counties.Income growth leads to analysis of the fiscal issues facing the l Need to catch up greater demands for public services,es- count,. We have proposed that the DuPage governments may have had to pecially schools.Our preliminan anal- task force undertake a detailed study catch up with population growth from ,sis shows that, not surprisingly, to investigate the above hypotheses. i the previous decade. Before 1980, Du- wealthier school districts spend more The stud,should include a quantita- Page experienced a greater rate of pop- per pupil than other districts. tive analysis of the tax rate in all Illi- ulation growth than Chicago's other nois counties as well as a more qualita- collar counties—and during a period Windfall profit taking tive analysis of the decision-making of high inflation. Governments may Other studies, including a recent Ur- process in some of the major taxing have been reluctant to raise taxes ban Land Institute investigation into bodies. enough to keep up with both the rising the revenue-generating capacity of The DuPage study and the recent .demands of a growing residential pop- Virginia municipalities,have suggest- study of Virginia municipalities by the ' tion and inflation. However,once ed that taxing bodies are engaging in Urban Land Institute show that both I -opulation and inflation growth "windfall profit taking." Stated anoth- planners and developers are becoming slowed in the I980s, the county no er way,as total assessments go up,the increasingly sophisticated in their un- doubt found it easier to raise taxes, taxing district raises the levy without derstanding of the interrelatedness of particularly given that nonresidential raising the rate. The DuPage study all forms of development. In the growth continued to increase rapidly mentioned this possibility but did not 1990s,municipalities will continue to and thus would shoulder an increasing investigate it. struggle with increased service de- share of the burden. mands and escalating service costs. Other factors While the Clinton administration may Increased education costs The original DuPage study suggests be more receptive than predecessor School enrollments may have in- several factors that may explain why administrations to the plight of cities creased in DuPage mare rapidly than nonresidential development might be and their infrastructure needs, efforts elsewhere in the metropolitan area,es- associated with tax increases. Most re- to reduce the federal deficit will make pecially in the 1985-1989 period,thus late to increased education expendi. it unlikely that significant resources resulting in higher public education tures to meet the need for an ade- will be available to local governments costs.The upsurge in enrollment may quately trained and prepared work- on a regular basis. Thus, cities will be partly attributable to the "sec- force, road and traffic expenditures; continue to look for other ways to in- ondary" baby boom that has affected and safety-related expenditures (po- crease their revenues and offset many suburban school districts.In ad- lice, fire, courts) associated with in- costs—whether real or perceived. A dition, changes in other determinants creased urbanization. Some of these comprehensive understanding of the of school expenditures, such as in- factors are already included in the development process and its public creased teacher salaries or reduced above hypotheses;others,such as the costs and benefits will be required for class sizes and attendant capital costs, following,should also be considered: all participants. ■ might have contributed to rising pub- ■ the extent to which employers/ iic education costs. firms influence school expenditures; Further,some of the increased edu- a expenditures for vocational training Wim N'invel is director of the Center(or j Urban Economic Devc!opnicrrt and _fstion costs may have been driven by and increased in-school services; associate rrnjessnrtry the School nf Urban fincome growth, which was higher in I ■ increased expenditures (absolute hlamrirre and Policy at the L'trivcrsityof I DuPage County than in the other three I and per capita) for police and fire pro- 111innis at Chicago. Land Development/Spring-Summer 1993 13