Note 3-47

47 For the "gradation adjustment," the graded system of compensation is used to set higher per capita costs for small governments, based on a presumption that economies of scale work for administrative services. The "density adjustment" is based on a presumption that less population density requires higher administrative costs due to more costs for transportation, etc. Among other adjustments, the "cold weather adjustment" is made to add special costs in cold-weather or snow-heavy regions.