Budgeting and Forecasting, Rethinking Revenue
Segmented Pricing for Fines and FeesDownload Report
Cities and counties across the U.S. increasingly rely on fines and fees to balance their budgets. However, fines and fees disproportionally fall on low-income residents who often are strained to pay. Therefore, local governments must become savvier about how they manage fines and fees. This paper contends that a pricing strategy called “segmented pricing” actually increases the revenues local governments can raise from fines and fees while also reducing the hardships that fines and fees can place on low-income citizens. The essence of segmented pricing is to charge the citizen the price they can afford—no more, no less. For more on segmented pricing, including a video explanation and a chance to participate in a pilot visit this page.
- Publication date: January 2022
- Authors: Jean-Pierre Dubé, Bryan Glenn, and Shayne Kavanagh