From Urban Core to Wealthy Towns

Abstract

Fiscal disparities occur when economic resources and public service needs are not evenly distributed across localities. There are equity concerns associated with fiscal disparities. Using a cost-capacity gap framework and a newly assembled data set, this article is the first study to quantify nonschool fiscal disparities across Connecticut municipalities. It finds significant nonschool fiscal disparities, driven primarily by the uneven distribution of the property tax base while cost differentials also play an important role. State nonschool grants are found to have a relatively small effect in offsetting municipal fiscal disparities. Unlike previous research focused on a single state, this article also conducts a cross-state comparison. It finds that nonschool fiscal disparities in Connecticut are more severe than those in Massachusetts, and nonschool grants in Connecticut are less equalizing than those in Massachusetts. This article’s conceptual framework and empirical approach are generalizable to other states and other countries.