Fiscal Impacts of Suburbanization Case Study - The Knik Arm Crossing, Anchorage, Alaska

Abstract

The fiscal crisis faced by many metropolitan area central cities is a well known phenomena. Much past research has suggested that the suburbanization of the population has been primarily responsible for the central city fiscal problems. This paper analyzes the potential fiscal consequences of a capital construction project that would increase the rate of suburbanization of the Anchorage metropolitan population. This is particularly interesting since Anchorage provides a case in which two of the recommendations generally found in the literature have been adopted. Anchorage has an areawide government and many of the services provided by the municipality are funded at a higher level of government (the state). We show that primarily because of these factors the fiscal effects of more rapid suburbanization are minimal.