Abstract
In this paper, I examine how municipalities are affected by tax and expenditure limitations (TELs). The main goals of TELs are to reduce the property tax burden of local residents and reduce the size of government. I find that these goals are generally met in the short run, however expenditures do not seem to be reduced over the long term. I also examine a potential unintended consequence of TELs, a shift in the balance of service and administrative expenditures. I find signs that municipalities may increase service expenditures just before TEL implementation, followed by significant reductions just after. This study also finds that over the long term, service ratio is significantly lower for municipalities operating under tax and expenditure limitations.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
