Homes built on the edge of urban areas require up to $1,500 morein annual services than they pay into local budgets, says JoyHerr-Cardillo, an attorney with the Arizona Center for Law in thePublic Interest. Herr-Cardillo and her group wrote the report forsupporters of Proposition 202, the Citizens Growth ManagementInitiative.

"You are subsidizing the development that's occurring on thefringes," she says. "The economics of that are real important forpeople to understand."

Wildcat subdivisions built far beyond the urban boundary, likethose in Pima County, will require millions of dollars to revampsubstandard services. Continued growth in northern Arizona couldrequire a water pipeline costing at least $128 million, sayproponents of Prop. 202.

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