The host discusses special districts, which are small units of government that have the power to tax and spend money on specific purposes, such as water or fire departments. There are approximately 40,000 special districts in the US, accounting for $100 billion in spending annually, with little accountability and oversight. Some special districts are created with minimal public input, such as a case in Texas where two people were hired to vote on a $500 million bond issue for a new housing project, and then left.
The host highlights examples of corruption and mismanagement in special districts, including a fire district in Rhode Island where the chief was caught drinking and driving, and a district in Kentucky where an assistant fire chief used taxpayer money to buy personal items. The host also notes that special districts can be difficult to dissolve, even when they are no longer needed.
However, some states, such as California, are working to increase transparency and accountability in special districts. The host concludes by noting that special districts can be problematic due to their lack of oversight and accountability, but also acknowledges that they can be useful in providing specific services to communities.
Here are the key facts extracted from the text:
1. Special districts are small units of government with the power to take tax dollars to do one specific thing.
2. There are about 40,000 special districts in the country.
3. Special districts account for about $100 billion in spending each year.
4. This is $16 billion more than Russia spends on its military.
5. When including school districts, special districts are the most common form of local government in the country.
6. Special districts can be set up for almost any purpose.
7. Some special districts have little to no accountability.
8. States may not even know how many special districts they have or how much they spend.
9. An investigation in Idaho aimed to identify how many special districts there are in the state.
10. In Kentucky, 40% of special districts that were required to file proper budgets did not do so.
11. Special districts can be created seemingly out of thin air.
12. The process of creating a special district can be perfectly legal but still questionable.
13. Voter accountability in special districts can be unlikely, with some elections having turnout rates as low as 1.8%.
14. Many special districts are not transparent, and some may try to blow off state government investigations.
15. Some states, such as California, are pushing to reform special districts and make them more transparent.
16. Special districts can continue to exist even if they are not serving their intended purpose, as there may not be a process for dissolving them.