The effect of local earmarking on capital spending in Georgia counties
By: FUNG, Changhoon
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Material type: 
ArticlePublisher: 2002State and Local Government Review 34, 1, p. 29-37Abstract: This article examines whether local earmarking practice results in an increase in the level and share of a designated category of spending. Empirical findings suggest that the use of a special purpose local option sales tax (SPLOST) earmarked for local capital projects in Georgia increased both the level (per capita spending) and share (designated category of spending as a percentae of total spending) of capital spending in counties using the tax. The author finds thatm as in most earmarking studies an extra dollar o SPLOST resulted in less than a full dollar of capital spending. However, the magnitude of the effect of local earmarking also increases significantly with local earmarking, despite t he fact that earmarked revenue can be diverted to substitute for other revenue sources. A form of taxation such as SPLOST may be especially viable in state in which taxpayers are unwilling to accept increased property taxes or general obligation bond issues for local capital projects
| Item type | Current location | Collection | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Periódico | Biblioteca Graciliano Ramos | Periódico | Not for loan |
This article examines whether local earmarking practice results in an increase in the level and share of a designated category of spending. Empirical findings suggest that the use of a special purpose local option sales tax (SPLOST) earmarked for local capital projects in Georgia increased both the level (per capita spending) and share (designated category of spending as a percentae of total spending) of capital spending in counties using the tax. The author finds thatm as in most earmarking studies an extra dollar o SPLOST resulted in less than a full dollar of capital spending. However, the magnitude of the effect of local earmarking also increases significantly with local earmarking, despite t he fact that earmarked revenue can be diverted to substitute for other revenue sources. A form of taxation such as SPLOST may be especially viable in state in which taxpayers are unwilling to accept increased property taxes or general obligation bond issues for local capital projects
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