Disincorporation

The WSJ has yet another sign of the dissolution of political units into ever smaller ones. As the economy worsens and states, cities, communities and families move to, or at least explore, becoming more independent, self-sufficient and resilient, we’ll see things like this happening more often.

As the recession batters city budgets around the U.S., some municipalities are considering the once-unthinkable option of dissolving themselves through “disincorporation.”

Benefits of this move vary from state to state. In some cases, dissolution allows residents to escape local taxes. In others, it saves the cost of local salaries and pensions. And residents may get services more cheaply after consolidating with a county.

In Mesa, Wash., a town of 500 residents about 250 miles east of Portland, Ore., city leaders have initiated talks with county officials about the potential regional impact of disincorporating. Mesa has been hit by a combination of the recession and lawsuits that threaten its depleted coffers, leaving few choices other than disincorporation, said Robert Koch, commissioner of Franklin County, where Mesa is located.

With this trend devolving power and responsibility to lower and lower levels, another interesting question to consider in the long term, is whether this will lead to the division of states. Consider northern Virginia (Fairfax County), Texas and California. Perhaps it will eventually lead to statehood in places like Washington, D.C. I discussed this awhile back here. Although the financial crisis may be the primary motivator for decisions at the moment, it seems to be only reinforcing an already growing trend.