Abstract
Abstract The growing recognition of the relationship between decisions about growth (how and where it occurs) and public sector budgets has contributed to the attention given in academia and in practice to fiscal impact analysis. This article explores the theory and practice of fiscal impact analysis with a focus on the relationship between government budgets and urban development patterns. Conventional wisdom states that higher-density development, or compact growth, produces more favorable fiscal impacts than low-density suburban sprawl. Furthermore, the article presents a framework for understanding fiscal impact analysis. It also presents a discussion of the methods of fiscal impact analysis and a discussion of the relationship between development patterns and fiscal impacts. Finally, it highlights some thoughts on the use of fiscal impact analysis for making development decisions.
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