State and Local Government Law Commons^™

Due to suburbanization and white flight, metropolitan regions suffer from great fiscal inequality. Wealthier, and oftentimes white, suburbs are able to keep their tax burdens low and receive high quality government services. In contrast, central cities, with many poorer and ethnic minority communities, face eroding tax bases and increased demand for social services. In response to this fiscal dilemma, central cities spend money to construct and operate assets, such as a sports stadium or music hall, in the hopes of spurring economic development that can create job opportunities for residents and increased tax revenues for the city. While such assets …