The problem of unequal response of local government expenditures on equal increase in local community income and lump-sum transfers has been observed in many empirical studies on cross-sectional variation in intergovernmental transfers to different local governments. This notion has been termed as the fly-paper theory of incidence, as money should stick where it hits. Nonetheless, the empirical evidence presented in this study suggests that the fly-paper effect could not be validated for intergovernmental transfer revenues of Slovenian municipalities. Potential explanation could be derived from the agenda control model of the fly-paper theory.