Fiscal effects of interlocal collaboration: evidence from Nebraska counties

Abstract

ABSTRACT The fiscal effects of interlocal collaboration, a growing method of service delivery, remain inconclusive. We analysed the revenue and expenditure effects of collaboration arrangements as a whole and in six service areas for counties in the U.S. state of Nebraska over the period 2013–2018. Our analyses reveal that counties with a higher number of interlocal collaborations had lower total per capita revenues and expenditures, but higher property taxes. Lower per capita revenues and expenditures appear to be the result of collaboration in service areas that include general government purposes. Interlocal collaboration related to health and human services activities, however, resulted in higher per capita spending and revenues, suggesting that the primary goal of collaborating in these activities may not be cost savings.