Special Districts in the Northeast United States: Do They
Enhance or Hinder Local Government Service Delivery?
Gina Scutelnicu, Assistant Professor
Pace University

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Independent, special-purpose units of local government
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Professionalize public services management
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Single vs. multiple functions - 90%/10%
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Enjoy limited general and special powers
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Do not have planning and zoning powers

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Characteristics:
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Narrow specialization
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Administrative and financial independence
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Geographic flexibility
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Low political visibility
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Status of SD
Dependent vs. independent https://www.census.gov//govs/go/sd.html

Theoretical and Empirical Evidence
Specialized vs. General-Purpose Governance
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Metropolitan reform theory vs.
public choice theory.
• Consolidation vs. Fragmentation
• Do not differentiate special districts
Contribution:
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How does service delivery occur at the local level?
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Develop a typology of SD based on state level data
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Assesses SD performance by function
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Specialized governance less efficient than generalpurpose governance (Berry,
2009; Foster, 1997; Mullin,
2009;)
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Economies of scale vs. economies of scope
(Hooghe & Marks, 2003)
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Responsiveness, accountability and equity not rigorously investigated
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Efficiency operationalization variation

Develop a typology of multi-purpose special districts based on state data (NE states)
Special districts classification varies (Eger III, 2006;
Foster, 1997; Porter et al., 1992)
Consistent classification across state boundaries:
Activity
Creation method & oversight
Status
Structure

Focus on economic & community development
I. Economic development (BIDs) - 9 states
Manage and fund street improvements; parking; sanitation; security; landscaping; marketing & special events etc.
II. Community development (CDDs) - two states (PA & NY)
 “Growth pays for itself”
 Manage and fund new infrastructure improvements & maintenance; public utilities; recreation facilities and transportation-related services

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SD centralized agency (NJ, NY & PA)
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Reporting information about SD finances - a formality
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Districts services are intended to supplement GP government services
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BIDs focus on commercial/industrial only
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CDDs focus on residential, commercial & mixed use

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Creation process:
Petition method: petition of property/business owners public hearing ordinance or resolution of municipality
Referendum method
Public hearing method
 Duration:
BIDs are time-limited or revised at certain intervals by municipalities
CDDs as perpetual entities
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Annexation/incorporation issues

 Dependent:
Appointed board of supervisors
Generate own revenues with approval of GP govts.; municipalities issue bonds
Under close supervision of municipalities
Limits are placed on taxes/assessments

 Independent:
E lected board of supervisors (all CDDs)
Generate own revenues - assessments, taxes, issue bonds
Once established, no clear oversight
Lack of coordination and cooperation between the general and the special-purpose governments
File reports and budgets for information only

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Multi-purpose districts suitable for economic & community development functions
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Great variety “hidden side of government”
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Few states keep track of their SD & require reporting enforcement
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Varying managerial & financial autonomy

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Assess Accountability to Performance
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Assess multi-purpose districts nationally:
Efficiency; Responsiveness; Accountability and Equity