Magazine article Government Finance Review

Intergovernmental Finance

Magazine article Government Finance Review

Intergovernmental Finance

Article excerpt

"Annexation: A "Winner-Take-All" Process?"

Edwards, Mary

State and Local Government Review, Fall 1999, pp. 221-231.

This article presents the findings of a study on the fiscal impact of annexation on city and town governments. Annexation refers to the process by which land is transferred from one local government to another. It is an important issue because it facilitates municipal growth and affects roughly 200,000 people each year. It is also a very controversial issue because it is widely viewed as a winner-take-all process in which the government that loses the land experiences a fiscal loss and the government that gains it experiences a fiscal gain. Unfortunately, few governments can perform a comprehensive fiscal analysis of the effects of annexation, so these effects are not well understood. To gain a better understanding of these effects, this study looked at 10 Wisconsin annexations that took place in 1990 and measured their financial impacts five years after each annexation. …

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