LOCAL-GOVERNMENT FISCAL BURDEN IN NONMETROPOLITAN AMERICA

Rising fiscal pressure on local governments in rural areas of the Unit ed States is documented in this study. The level of fiscal burden on t axpayers to support local governments in nonmetropolitan areas is foun d to be higher than that in metropolitan areas between 1977 and 1987. Using a model from the urban fiscal literature, the level of fiscal bu rden in nonmetropolitan areas is found to be influenced by a combinati on of demographic, socioeconomic, intergovernmental, and historical fa ctors. Intergovernmental revenue transfers from the state and federal government play a critical role in determining the level of fiscal bur den rural taxpayers bear. These findings have implications for rural e conomic development and for understanding how rural areas are influenc ed by the larger society.