Enterprising Government: The Political and Financial Effects of Fee-Supported Municipal Services
Author: HEE SOUN JANG and MYUNGJUNG KWON
Published in PAQ, Vol. 38 No. 2
A market-like service delivery mechanism which shifts tax-supported general fund services to fee-supported enterprise fund services has become a popular strategic tool for cities to achieve more responsive and efficient finance systems. Although the major advantage of fee- supported services is the ability to earn rather than spend, not all local governments utilize them. By employing the two stage Heckman model, this research explores Florida municipalities’ strategic behaviors of introducing and increasing fee-supported services. We found that cities that have limited property tax revenue to provide general fund supported services are more likely to introduce and increase fee- supported services. Another important discovery is that the strong mayor form of government tends to favor the fee-supported services more than council-manager cities.
Subscribers: Login to read this article
Guests: Subscribe to PAQ, or purchase individual article access for $10.
The article is not available for automatic download. We will email the article to you as a PDF file upon receiving your payment, typically within 24 hours.