Fiscal Impact Analysis Model

Background of OKI’s Fiscal Impact Analysis Model

The Ohio-Kentucky-Indiana Regional Council of Governments (OKI) has developed a Fiscal Impact
Analysis Model to give decision makers a better understanding of the budgetary implications of land use
proposals. The need for a fiscal impact analysis tool was identified as part of OKI’s Strategic Regional
Policy Plan, adopted in 2005.

Federal transportation investments stimulate land use change and economic development. The Model will
help local governments to capitalize on the potential land use changes related to these transportation
investments by analyzing the impact of alternative land use scenarios on their jurisdiction’s budget. As
communities better understand the associated costs and revenues of development through fiscal impact
analyses, they will be better able to plan for investments to serve new development or to fix existing
deficiencies. This can impact the regional transportation funding process and make more efficient use of tax
dollars at the local and federal levels.

Use of the Model

Go go the Fiscal Impact Analysis Model

The Fiscal Impact Analysis Model is an educational tool. Information generated from the Model will help
local governments better understand the revenues and costs associated with new development and the
jurisdiction’s ability to provide public facilities and services.

The Fiscal Impact Analysis Model estimates the costs and revenues associated with land use change. It can compare alternative development scenarios within a jurisdiction and analyze effects of specific development projects.

The results of the Model are an estimate of potential future expenditures and revenues. Actual results may
differ significantly based on the specific development and site characteristics. It’s important to note that
information from the Fiscal Impact Analysis Model should not be the sole source for making land use
decisions. Model results provide information on only one aspect (the fiscal aspect) of the land use decision
making process. Land use decisions are complex and should involve consideration of multiple factors
including environmental, social, political, economic, and many others, in addition to fiscal.

Model Data and Analysis

The Model uses local, regional and national data sources to estimate revenue and the demand for broad
categories of services that are likely to result from the proposed development or redevelopment. The Model bases revenue and cost estimates on the statistical relationship between types of land uses and the intensity of their revenue and cost generating factors.

Data provided by OKI is used for many of the Model calibrations; however specific local data on land use,
market value, tax rates and financial data are necessary to produce results. This local data is critical to the Model’s ability to develop reasonable estimates. The Model has been created in both Microsoft Excel and as a web application.

Interested in Using the Model?

The Fiscal Impact Analysis Model is intended for use by communities in the Ohio-Kentucky-Indiana
Regional Council of Governments (OKI) region. Use of the Model is currently available to OKI
jurisdictions that have provided their data to the Model. For more information on partnering with OKI to use
the Fiscal Impact Analysis Model, please contact the OKI Regional Planning Manager, Travis Miller at 513-619-7681.