Local Government Border Congruence and the Fiscal Commons: Evidence from Ohio School Districts
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School district and municipal borders do not always align. Noncongruent borders can create a fiscal commons problem where new development does not entirely “pay its way.” In response, frustrated citizens often respond by voting for lower school spending. Using GIS data on Ohio school districts, the degree of noncongruence between school district and munic-ipal territory is calculated. The results indicate that school districts with noncongruent borders generate less revenue from local sources and that these effects seem to increase with the degree of noncongruence. The findings are robust between OLS and treatment effects regression.