Costs from above drive local taxes up:

Local governments get saddled with obligations mandated by other units of government. Some are worthwhile, some are a waste depending upon your point of view.

For example, hundreds of communities across the US have been forced to implement costly infrastructure changes to protect the environment. These are well known as "unfunded federal mandates."

The impact on the environment is very worthwhile. However, the impact on local pocketbooks can be very burdensome. Unfortunately, payments for these improvements are often passed along as rises in sewer and water user fees. Local government gets blamed.

The process is addressed by one expert in this way: "We're in a period of fend for yourself federalism," says Stephen Gold, director for the Center for the study of the States in Albany, N.Y. "The federal government is putting more responsibility on state government, and state governments are putting more responsibility on local governments. If all this goes too far we are going to have a property tax explosion. Its like a rubber band that is getting tighter and tighter."

Article by Malcolm Gladwell, Page 14, March 13-19, 1995