"Special District Formation Among the States".

• Position: Brief Article

McCabe, Barbara Coyle

State and Local Government Review, Spring 2000, Pp. 121-131.

This article examines the phenomenon of special districts and uses an analytical tool to determine what circumstances lead to the creation these districts across the United States. Based on research, the authors believe that there are three factors that influence the creation of special districts. The first is state control over local governments. State-imposed fiscal limits that restrict general purpose governments' ability to tax, spend, or borrow are likely to lead to the creation of special districts. Likewise, state fiscal practices can lead to the creation of special districts by offering direct inducements to their formation, such as giving them direct aid or granting them the authority to tax property. The second factor that influences special district formation is the political influence of the business community...