Alternative Formulas for Allocating LOST Revenue to Counties and Municipalities

Abstract

The focus of our research is on the allocation of the LOST revenues between the county and municipal governments. This research reviewed various aspects of the LOST allocation and considered several alternative methods of distributing LOST revenues between the county and sub-county units. This is a complex problem with high stakes. Because the allocation is a zero-sum game, any change in the allocation is almost guaranteed to make one party worse off than under the current allocation. The real gains lie in both sides being freed from negotiations that are oftimes long and costly in terms of staff time and outside consultants. Report #9