Citizen perceptions of general-purpose and special district governments: A comparative analysis

Abstract

Special districts comprise over 40% of local governments, prompting debate on the merits of general versus special entities. Previous research focused on relative cost-efficiency and tended to ignore how special districts impact government accountability. This study fills a critical need by testing how type of government (general versus special) impacts citizen awareness of and familiarity with government, a precondition for accountability. Drawing from two theoretical perspectives (institutional reform and public choice), we used survey research to assess familiarity with the goals and performance and financial practices of local governments in Indiana. Our study participants were more aware of and familiar with general than special governments, which supports the institutional reform perspective more than public choice. We conclude that efforts to improve accountability should be expanded to include special districts.

Special Districts and Local Government Debt: An Analysis of “Old Northwest Territory” States

“…Under the revenue‐complexity hypothesis, as special districts proliferate and the local government landscape becomes more complex, it is increasingly difficult for taxpayers to identify the tax price for local public goods and thus, public expenditures and associated debt will be higher. Consistent with this hypothesis, Killian and Le () find that citizens are less familiar with the role and functions of special district government than that of general purpose governments. Debt illusion occurs when debt‐financed projects have a lower perceived tax price than current tax payments so that households demand higher levels of local government expenditures through debt financing.…”

“…As such, they contribute to citizen confusion as well as financial risk. Previous research has shown that citizens are less aware of the existence of special districts and less able to hold them accountable for programs, operations, and financial practices (Killian and Le ). This research shows that an increase in the number of special districts is associated with an increase in local debt in some states.…”

Special-District Proliferation and Local Financial Condition: The Hidden Cost of the Externalized Service Responsibility

“…First, the city and county government authorities are originally responsible for the jurisdiction-wide, all-inclusive public service provision when the special districts did not exist. Second, citizens tend to be su ciently aware to hold the general-purpose governments accountable for public service provisions but tend to be rather naïve about how to hold special districts accountable (Killian & Le, 2012). Third, if the public service responsibilities were not externalized to special districts, all constituent citizens would bene t from the service provisions of the general-purpose governments, regardless of income level and residential location.…”

“…The results indicate that a greater number of special districts tends to decrease the quality of nancial conditions of general-purpose governments.Findings of this study add to the current knowledge of special districts and their scal impacts. General-purpose governments may externalize some service responsibility to special districts, but adverse social impacts from these 'shadow governments' remain billed to general-purpose governments that are more awarable to citizens (Killian & Le, 2012; Judd, McKenzie, & Alexander, 2021). In the following sections, this study brie y reviews the determinants of local nancial conditions, with a speci c focus on intergovernmental relationships.…”

Who Benefits from Special District Service Delivery?: Water Affordability in the United States

“…Opponents of special districts view them as opaque, challenging for residents to hold accountable, and susceptible to capture by special interests. Bollen (1957) famously called special districts "shadow governments," and this general view has been echoed by numerous scholars since (Killian and Le 2012;Burns 1994). Empirical research has shown that special districts may indeed by less visible, with Killian and Le (2012) finding that residents are less likely to be aware of special districts than general purpose governments.…”