In many states, city and town taxpayers must also pay county taxes since they benefit from many countywide services. In some cases, sales tax is shared among municipalities as well. These types of revenue structures sometimes lead to questions of fiscal equity. Our Fiscal Equity Studies help determine, from a municipal perspective, if the cost of services provided is commensurate with the taxes paid, and from a county perspective, if the municipalities are paying their fair share.

Such questions are being asked more frequently across the country. With TischlerBise’s experience dealing with fiscal issues and developing revenue strategies, we are frequently asked to evaluate such questions of fiscal equity. Recent examples of Fiscal Equity Studies conducted by TischlerBise are provided below:

Shelby County, Tennessee

TischlerBise evaluation shows that County taxpayers subsidized services to the City of Memphis over $44 million.

At the request of the Commission on Alternative Futures, Shelby County contracted with TB to prepare a fiscal equity study. This study focuses on whether City of Memphis residents and businesses that pay County taxes are receiving a commensurate County expenditure for 16 selected public services.

TischlerBise’s analysis showed the County subsidizes the City Schools, Sheriff, Planning and Economic Development, Health Care Centers, Health Services, The Medical Center, Jail, Corrections, Criminal/Civil Justice and Human Service Grants in the amount of $88,550,839. The City subsidizes County Schools, Memphis/Shelby County Library System, Fire and Emergency Services, Parks, Public Works, and Public Assembly Facilities and Regional Amenities in the amount of $44,524,605. The net result is an annual Shelby County subsidy of over $44 million.


Clovis, California

TischlerBise review of County study reveals methodological flaw in the City’s favor

In Clovis, California, TischlerBise has been retained by the city to evaluate a consultant study prepared for Fresno County that shows the county subsidizes the provision of countywide services to Clovis, as well as to the other municipalities in the county.

TischlerBise, working in cooperation with both the city and county, is helping both parties to understand the implications of different allocation methodologies and is analyzing the data used in the county study. Our review of the county’s study has revealed a serious methodological question, which results in the City of Clovis contributing over $5 million more in revenues to the County than it receives in countywide services.


Napa, California

TischlerBise conducted a two-phase Fiscal Equity Study for Napa County, California. A fiscal equity study is an examination of the relationship between taxes and other revenue paid for by residents and businesses to the County, and the services provided by the County in the unincorporated and incorporated areas of the County. The intent was to determine if the unincorporated County subsidized the cost of countywide services in the incorporated areas or if the opposite was true.

  • Phase I: Fiscal Equity Study was a high-level view of discretionary expenditures (“net County costs”) and revenues classified as either “countywide” or “municipal.” Countywide expenditures represent those costs incurred by the County to provide services throughout the County, including within the incorporated areas. Municipal expenditures are costs that the County incurs to provide municipal-type services in the unincorporated areas such as sheriff and planning. The purpose of the study was to determine whether there was an unincorporated area subsidy of countywide services or a City subsidy of municipal services. The overall finding of the Phase I analysis was that the unincorporated area subsidized countywide services.
  • Phase II: Fiscal Equity Study was a Service Incidence Study that used geographic information on the County’s expenditures and revenues to allocate costs and revenues to the unincorporated County and/or the incorporated areas. Unlike Phase I, this study included all expenditures, not just net County costs (i.e., those funded by discretionary revenues). It identified distinct services delivered by the County and allocated the expenditures for each service by geographic area—specifically by jurisdiction. The overall finding of the Napa County Service Incidence Study is that in total, the unincorporated area subsidized countywide services provided in the incorporated areas.