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s and revenues, this approach can capture the rough the economtive effects of growth as they th work :heir Dernwid and Supply Factors in Local fiovernment way througv-The few extant studies e of this type have examined per-capita local spending Expenditures )Is as the key variable affected by growth.The clear finding common to these studies is that in doff" lo al go rnm ri seru of vardtions that m me�rerary,dente,is po vey in demand for bill gPVerttttnerrt susvices induroc laced with vwnt uses per apm Tha may be per-capita spending by local governments increases as population increases. Whether the study looked `Education mad mama levees,which wW to exptaarnd by the efto of clarity on dotard corre be highly lated.Past research r4cates for services(see above).Another expiamation a at growth or at absolute size,the result of increased • that the danar•�d for that increased operation and maintenance casts spending for larger populations holds, public services a aroma Cross-jurisdictional fiscal impact studies have elastic,which means that as incomes increase, may more than oftet any cost savings on intra- IN dwwW lor su Mms Increases at a structure coastnxtion. not,however,explored growth's effects on service pmpwtiomt*greater rate. • The Production casts at services.The corn. levels or tax burdens,because comparable measures • Age suff which is obvio*impomitt.As pones:costs-tor labt,r,land,sermes,and ma- of these variables are elusive.Thus,these studies the proportion of the population represented by tenaus-of government services production vary have not determined whether growth simply drives school age children increases,the demand for iron Place to Piace.in ism vim up the costs of services or whether it increases the educational services incrtase&An increase in for residential land varied tram 510,000 an acre tax base per capita and thereby the revenue capacity the proportion of senior enacts will increase to 5200,000 an acre across 30 U.S.metrnpofr per capita.They have failed to address the effect of demand for local gavernnent services aanad at tan areas.labor costs vary comsiderably less growth on tax burdens. 9 rinose qp because people can easily move to take advan- •De aity,bemuse typically the higher the den- Cage of wage differentials,but differences do ex- shy the greater the demand for such public serv. aL In 1990,the state averages tar all teachers' U'S Study ices as parks and recreation facilities.traffic salaries ranged from$21,000 in South Dakota management,and environmental managemert to 543,000 in Alaska,according to the Ul De- ULI's research division recently completed a study Several factors tneoretially play some role in partment of Education's National Center for Edu- of the fiscal effects of growth that,unlike other stud- cation Statistics-Among metropogtan areas,the ies of this genre,reveals some consequences of growth `*n"a101g noel vrt coo d prat- cost of�varies it=pars or mono 35 per- for of s om levels of service,ambigut the net card of the national average cost of wing.Vari- forlocal revenue capacity and tax burdens as well as ef-xa d some d these factors a ambiguotrsr once in cfgmase�sod crua�tiora may kid to a for expenditures.This analysis was trade possible by 1w d secormLiesl of.scalL The variance in tack construction crests or operat- the availability of data on both revenue capacity and "V&&4 view is that uffqtpe services m9 costs.In some dry areas,for example,the expenditure levels for jurisdictions in the state of Water,sewer.and transportation)and txntai- unit costs of supptpav a gal4on of water art Jg a bled aftir ist ative unctions,.such as plarPding substantially elevated bemuse the water must _ .o Cities and counties in Virginia are independent; and kwicsal admit-stration display economies be mod. vide comparable services,and possess similar tax- of stole over a large sic range,while other im- •Remove transfers and debt burdens.The ing powers. Cross-jurisdictional analyses need not pow MOCIPal 1u iora-edumtion,police, amount of revenues transferred hm bderat and sort out the effects of variations in functions and ire.and soid waste collection-do not appear state governmerds and the eraart to which past services among jurisdictions.Also,local govern- to aft ecotmnies of scale,above a fairly low capital costs have been debt financed with pay- ments are required to submit standardized reports motion lewd'Some scale economies may me is amasaaed over burin Y*.an;can substan- on revenues and expenditures for inclusion in a state be invossibile to measure bemuse VW are qty affect the*price'of government services report comparing local government finances.Thus, by diftrentials in quaff of service.The actually paid by residents,Intergovernmental bottom in is that the net erect of stole econo- revenues vary couidera*tram area to area. standardized data are available for a large number miss rennaire uncleaar. in 1987.38 percent of total local government and variety of local governments that provide simi- .p,rosity.While 4th compeative revenues in the United States came from the lar services but represent a variety of size and analyses hanne shown that apical costs for federal and state governments.In the 50 larg- growth characteristics. roads and Mies go down as settlement pat- est U.S.cities„per-capita interpovemmartal The key factor explaining variations in levels of teats became mess compact,most smites of revenues ranged from$82 tTsdsal to$1,360 local government expenditures is likely to be the read pubic service costs have found not that (New York). -- relative capacity of the private economy in the juris- dettsity t TA=Iowa public SWAM coo but diction to generate revenues.Virginia has devel- oped a measure of per-capita revenue rapacity for per square mile.Population growth increases the local jurisdictions,based on a combination of total overall size of jurisdictions,and commercial and in- property value, total adjusted gross income of resi- dustrial development increases the proportion of dents,the aggregate amount of taxable retail sales, jobs per capita.Therefore,using measures of popu- _ and the number of automobiles(for personal prop- lation size and jobs per resident should give some in- erty taxes and motor vehicle registration fees). dication of how growth affects the basic capacity of _ ULI conducted two analyses to examine the jurisdictions to pay for public services. . relationship between population and economic • Growth Measures.For these same jurisdictions, i. - wth and revenue capacity: the analysis looked at the relation between the rate " t ge in jobs per capita, ze and jobs per resident and revenue capacity per the value of construction.per capita,and the change ze.Measures.The relation between population of population growth, the chaia capita was analyzed for the 59 cities and counties in revenue capacity per capita.The period covered with population densities of more than 100 people was 1984 to 1989. _ - January 1993 Urban Land 1$