Value Capture for Transportation Finance

As vehicles become more fuel-efficient and overall levels of travel stagnate in response to increases in fuel prices, conventional sources of revenue for transportation finance such as taxes on motor fuels have been put under increasing pressure. One potential replacement as a source of revenue is a set of policies collectively referred to as value capture policies. In contrast to fuel taxes and other instruments that impose charges on users of transportation networks, value capture policies seek to generate revenue by extracting a portion of the gains in the value of land that result from improvements to transportation networks. In this paper we identify a set of eight policies that contain elements of the value capture approach. These policies include land value taxes, tax increment financing, special assessments, transportation utility fees, development impact fees, negotiated exactions, joint development, and air rights. We evaluate each of the policies according to four criteria: efficiency, equity, sustainability (in terms of revenue adequacy and stability), and feasibility. The value capture concept is placed within a more general framework of transportation finance that emphasizes the relationship between different types of charges and groups of beneficiaries from transportation investments.Transportation Ð Economics, Land value, Transportation Ð finance and taxation

Rural Taxation Reforms and Compulsory Education Finance in China

In recent decades, the responsibility for the financing of compulsory education in rural China has rested with townships and villages which, with limited tax authority and uneven revenue capacity, increasingly relied on a plethora of arbitrarily imposed fees for funding. To reduce farmers‘ fiscal burdens, since 2000 the central government has installed a series of rural taxation reforms. Correspondingly, the central government shifted the administrative responsibilities of rural compulsory education to the county level in 2001, and implemented a series of policies to make up for the loss of revenues to education. Using a provincial-level dataset from 1998 to 2006, this study examines whether and how the rural taxation reforms have affected the adequacy and equality of compulsory education finance in China, and addresses related theoretical and policy implications from the perspective of intergovernmental fiscal relations

Fiscal Effects of Local Option Sales Tax on School Facilities Funding: Evidence from North Carolina

Since the 1970s, the North Carolina Legislature has authorized its counties to levy four local option sales taxes (LOST). Proceeds from two of them are partially restricted for school capital needs; two other LOST are used to augment counties’ general revenues that may also affect school capital funding. Experiences from other states have raised concerns that the adoption of LOST may increase inequality in school finance, but the empirical results have been mixed. Using a data set of one hundred North Carolina county school districts from 2004 to 2006, this study examines how public school facilities are funded, and investigates whether the adoption of LOST aggravates or alleviates inequality in public school capital revenues in the state

Fiscal Conditions, Political Interests, and Service Outsourcing Decisions: The Case of Georgia Counties

The question why a government chooses a specific service delivery tool to provide public service to its citizenry is a central intellectual inquiry in public administration. This paper develops a framework to explain the production and sector choices of public services by political-economic environment, organizational capacity, service market condition, and nature of service. Using operation and financial data of Georgia county governments during 2000-2006, we apply the framework to analyze Georgia counties’ public service outsourcing decisions, focusing on the effects of fiscal condition and political interests. The logistic regression results show that the choice of external production is negatively associated with government’s revenue raising capacity, managerial capacity, and citizens’ political demand for local control yet positively associated with conservative ideology. The choice of private sector is positively correlated with conservative political interest, increase in discretionary financial resources, and the centrality of government’s position in local service provision market

Introduction: Symposium on China Studies

To meet the increasing scholarly interest in China, this symposium provides a forum for scholars in public budgeting and finance to exchange research on China-related issues. There have been new initiatives to reform China’s public fiscal system in the past two decades. The papers in this symposium examine advances and associated issues in fiscal decentralization, local budgeting, and urban infrastructure financing. The papers not only analyze the existing issues, but also make recommendations on how to develop an accountable local budgeting system, how to finance sustainable urban infrastructure, and how to pursue a more balanced approach to fiscal decentralization in contemporary China

Transportation Investment and Job Creation in Minnesota Counties

Numerous studies have been conducted about the impact of transportation investment on economic development. These studies typically use a conventional production function model of economic development augmented by a public capital input, such as highways, rail, or other transportation investments.The findings, in general, confirm a positive elasticity between transportation investment and economic development, but the range of the effects varies widely among studies. In a recent research project, Zhao (2015) quantifies long-term transportation capital stocks in Minnesota counties and finds that these stocks have positive returns on property values. This study extends Zhao(2015)’s methodology to study the link between transportation investment and job creation. We find that long-term transportation investments contribute significantly to employment in Minnesota counties. The results have several policy implications. First, investments on local roads within a county can increase the employment rate in the county. Second, investments on trunk highway surrounding a county can increase the employment rate in the county. Lastly, in the context of Minnesota, it could be more effective to invest in rural areas compared to urban areas, as far as employment growth in concerned

Joint development as a value capture strategy for public transit finance

JTLU vol 5, no 1, pp 5-17 (2012)Synthesizing relevant experiences in US and some Asian countries, this article reviews joint development as a value capture strategy for funding public transit. The review starts from the concept of joint development in transportation, its rationale, and the extent of use. We then provide a classification of joint development models with respect to ownerships and transaction methods. These models are illustrated with case examples from multiple countries. After that, we assess the efficacy of joint development with a set of criteria for transportation finance evaluation, including economic efficiency, social equity, revenue adequacy & sustainability, and political & administrative feasibility. Finally, we conclude and provide recommendations for policy consideration

Building Local Agency Capacity for Public Engagement in Local Road Systems Planning and Decision Making

Aging infrastructure, changing patterns in road demand, and persistently constrained revenues challenge the sustainability of local road systems. This research is a comparative analysis of public engagement methods for involving stakeholders in decision-making about these complex issues. It is the result of an engaged scholarship project conducted in three Minnesota counties: Beltrami, Dakota, and Jackson. This report analyzes qualitative and quantitative data collected from 91 study participants through observations of policy dialogues, media content analysis, interviews, focus groups, and surveys of attitudes about these policy issues and public engagement methods. In-depth case studies of three counties describe the local road policy issues, the public engagement approaches, and their effects. This research identifies convergences and divergences in information and perspectives among stakeholders. Tools developed for addressing the communication gaps are available at http://tinyurl.com/local-roads. Some public engagement methods allowed study participants to change their perspectives on what road management options were achievable and acceptable. This occurred through active recruitment of diverse stakeholders, focus groups with individuals of similar backgrounds, and a facilitated policy roundtable among all the different stakeholders. An additional finding relates to evaluation measures for public participation, which scholars and practitioners acknowledge are poorly developed. This study documents a fresh perspective by identifying the likes and dislikes of participants in public participation processes about how they are organized

Ten new insights in climate science 2022

Non-technical summary We summarize what we assess as the past year's most important findings within climate change research: limits to adaptation, vulnerability hotspots, new threats coming from the climate–health nexus, climate (im)mobility and security, sustainable practices for land use and finance, losses and damages, inclusive societal climate decisions and ways to overcome structural barriers to accelerate mitigation and limit global warming to below 2°C. Technical summary We synthesize 10 topics within climate research where there have been significant advances or emerging scientific consensus since January 2021. The selection of these insights was based on input from an international open call with broad disciplinary scope. Findings concern: (1) new aspects of soft and hard limits to adaptation; (2) the emergence of regional vulnerability hotspots from climate impacts and human vulnerability; (3) new threats on the climate–health horizon – some involving plants and animals; (4) climate (im)mobility and the need for anticipatory action; (5) security and climate; (6) sustainable land management as a prerequisite to land-based solutions; (7) sustainable finance practices in the private sector and the need for political guidance; (8) the urgent planetary imperative for addressing losses and damages; (9) inclusive societal choices for climate-resilient development and (10) how to overcome barriers to accelerate mitigation and limit global warming to below 2°C. Social media summary Science has evidence on barriers to mitigation and how to overcome them to avoid limits to adaptation across multiple fields

How Do Complete Streets Matter for Communities? The Case of Richfield, Minnesota

Municipalities across Minnesota have turned to Complete Streets in an attempt to develop more usable roads for their residents. This report investigates how Complete Streets are reshaping one Minnesota community. In 2013, Richfield, a suburb of Minneapolis, enacted a particularly innovative Complete Streets policy. Known locally as “Richfield Sweet Streets,” the program has led to the reconstruction of several major roads across the city. Richfield’s Sweet Streets program is unique in that it incorporates a modal hierarchy in which users are prioritized differently in road redesign and reconstruction. It relies on extensive community engagement, aiming to improve outcomes for individuals and the community as a whole. This research presents a baseline analysis of how Richfield’s Sweet Streets projects are affecting the local community, while identifying a set of methods and measures for future research. The analysis draws on multiple sources of data to better understand the nature and consequences of Richfield’s Sweet Streets for user experience and livability, economic vitality, transportation and safety, and individual and community health. The research aims to illustrate Richfield’s innovative approach to transforming its transportation infrastructure while providing a roadmap for future analyses of the impacts of Richfield’s Sweet Streets