ABSTRACT

Fiscal impact analysis (FIA) is the process of estimating the impact of a development or land use change on the costs and revenues of governmental units serving the development. There is substantial evidence that different types of developments have unique revenue-to-cost relationships. When the proposed revenues to be generated from the new development exceed the proposed costs associated with that development, the proposed fiscal impact is said to be positive. This means that local authorities can better meet the new demands for services emanating from the new development. Conversely, if the estimated new revenues fall below the costs associated with the development, the fiscal impact is described as negative. Standard techniques used in conducting an FIA are applied to city planners, developers, consultants, and citizens. This entry looks at FIA in terms of its techniques, benefits, and challenges.