Fiscal Impact Analysis for California Cities, Counties and Developers

GERC prepares fiscal impact analysis for cities, counties and developers, using public finance data such as State Controller reports. A fiscal impact analysis estimates how a development, annexation, policy or programme will change a public agency’s revenues and costs. It answers the question every council and board asks: will this pay for itself, or will it cost the general fund money each year?

What our fiscal impact analysis covers

  • Revenues: property tax, sales tax, transient occupancy tax, utility users tax, fees and other local revenue sources
  • Costs: police, fire, public works, parks, libraries and general government services
  • Net annual fiscal effect at build-out and over time, with key assumptions tested
  • Special district and school impacts where relevant
  • Funding mechanisms such as community facilities districts or development agreements, where a shortfall needs to be closed

When you need a fiscal impact analysis

  • Specific plans, general plan updates and large residential, industrial or logistics developments
  • Annexations and changes of organisation reviewed by a LAFCO
  • New programmes, facilities or service changes
  • Grant applications that must show long-term operating sustainability

We work for public agencies directly and as a subconsultant to planning and engineering firms. Our fiscal work draws on the same data as our economic impact analysis, so both can be delivered together.

Fiscal impact analysis FAQ

What is the difference between fiscal impact and economic impact?

Fiscal impact is about a government’s budget: revenues and service costs. Economic impact is about the wider economy: jobs, income and output. Many projects need both.

Do you work for developers as well as agencies?

Yes. We prepare fiscal analyses for developers to submit to agencies, and we peer-review developer studies on behalf of agencies.

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