The National Special Districts Coalition (NSDC), of which CSDA is a founding member, announced Wednesday its proposed federal definition of “special district,” marking a pivotal step in the coalition’s top federal policy priority.
Despite approximately 35,000 special districts providing essential local government services to millions of Americans, there is no single federal definition for “special district.” The absence has led to inconsistencies in how special districts are referenced as eligible for federal programs and additional hardship to access federally-sourced assistance for infrastructure projects and community programs.
The NSDC Executive Committee, chaired by CSDA Chief Executive Officer Neil McCormick, unanimously approved the definition developed by a working group of special district representatives throughout the country. NSDC’s proposed federal definition of “special district” reads:
“Special District” – A political subdivision of a State, with specified boundaries, created pursuant to general law or act of the State, for the purpose of performing limited and specific governmental or proprietary functions, except that is not a school district, college, county, city, town, township, village, parish, borough, or other general-purpose unit of government.
The NSDC-proposed definition will be the cornerstone of future coalition advocacy on the subject. Federal special district advocates aim to secure the definition to set a benchmark for the term. Meanwhile, advocacy will continue to ensure special districts are eligible for relevant federal programs soon to be considered for reauthorization or in pertinent legislation proposing new programs to assist local government services and infrastructure.
While an early definition was legislatively posed in the 116th and 117th Congresses with the Special Districts Provide Essential Services Act, the nation’s special district leaders and stakeholders recognized a need in early 2023 to revisit the previous definition with greater engagement and deeper analysis as the coalition has developed.
“This definition is the culmination of three years of nationwide outreach, coalition building, research, and of promoting awareness of special district services to members of Congress and the Executive Branch – with more work to do ahead,” said McCormick. “A special thank you to members of NSDC’s working group and all supporting partners for their dedication to this effort. CSDA, together with the Coalition, looks forward to working with grassroots, state, and national special district stakeholders as well as fellow local government organizations to ensure special districts are defined, understood, and may experience greater access to federally-funded programs for local government.”
The NSDC Working Group to Define “Special District” was comprised of special district leaders and stakeholders from Arizona, California, Colorado, Florida, Oregon, South Carolina, Utah, Washington, and Wyoming. The working group rigorously examined how special districts fit within the structures of local government across state lines, received input from the NSDC Advocacy Team (TFG and Paragon Government Relations), and met with U.S. Census Bureau representatives for deeper discussions on how the federal government classifies special districts in its local government statistics.
Special districts are local governments created by a community to perform a specific service, or services, that another unit of government is not otherwise providing. Special districts have their own tax and revenue base, may issue bonds, and are overseen by locally-elected or locally-appointed boards of directors. Common services special districts provide include drinking water, wastewater treatment, fire protection, emergency response, port and harbor, hospital, irrigation, electricity, park and recreation, library, resource conservation, airport, cemetery, mosquito abatement, transit, flood control, and more.
The National Special Districts Coalition (NSDC) is the only national organization federally representing and advocating for all special districts. The Coalition strives to advocate for elevate awareness of the nation’s special districts and the critical, essential services they provide in thousands of communities to millions of Americans. Special districts in California receive full access to NSDC benefits and services through membership in CSDA.
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