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Interlocal Collaboration and Local Fiscal Structure: Do State Incentives Matter?

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  • Sungho Park
  • Craig S. Maher
  • Carol Ebdon

Abstract

Interlocal collaboration is considered an important tool for cost‐saving. States, therefore, have incentivized interlocal collaboration in different ways. To understand the budgetary consequences of interlocal collaboration and state incentives, we examine counties in Nebraska where the State uses two incentive mechanisms—resource restrictions and additional access to restricted revenues granted to counties with collaboration. This study finds that county expenditures are lower when they spend more through collaboration. While this lower spending is related to lower revenues in counties less constrained by state restrictions, the results for counties more constrained are unclear. State incentive structures may matter for such variations.

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  • Sungho Park & Craig S. Maher & Carol Ebdon, 2020. "Interlocal Collaboration and Local Fiscal Structure: Do State Incentives Matter?," Public Budgeting & Finance, Wiley Blackwell, vol. 40(2), pages 20-43, June.
    • Handle: RePEc:bla:pbudge:v:40:y:2020:i:2:p:20-43
    DOI: 10.1111/pbaf.12250
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    References listed on IDEAS

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    Cited by:

    1. Sarah E. Larson & Bruce D. McDonald, 2023. "Taxation and citizen choice: The effect of a county charter on property taxes," Public Budgeting & Finance, Wiley Blackwell, vol. 43(1), pages 64-84, March.

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