The political economy of city life cycles: a comparative analysis of services, expenditures and revenues

This paper updates and expands Norton's 1979 study of the political economy of city life cycles in thirty jurisdictions. Using 1970 and 1976 fiscal data, Norton had found that older cities of the Northeast and North Central states provide a more extensive range of services and have a stronger commitment to social welfare functions than younger cities of the South and Southwest. A thirty-five city survey using 1991 data generally confirms his findings. We found significant differences in the service mix, spending patterns and revenue sources of older and younger cities. Older cities offer a broader mix of services with the most dramatic differences among redistributive and safety functions, and notable differences in the public works and administrative services categories. Older cities expend more per capita on local services and exhibit different spending priorities. They spend propor-tionately more on redistributive services, eg. health, hospitals, welfare and housing. They also spend more per capita on police, fire and education. On the revenue side, older cities depend more on commercial property taxes, while newer cities rely more on residential property taxes. The most significant difference on the revenue side, however, concerns the greater reliance of younger cities on locally generated non-tax sources (eg. user fees), whereas older cities remain more dependent on intergovernmental aid.