Tagged: revenue sharing

Lansing’s mayor has appointed a committee to take a hard look at the capital city’s financial health.

The committee is made up of some of Lansing’s top business and civic leaders.

Declining property taxes and state revenue sharing dollars combined with rising costs are squeezing Lansing’s finances.

Lansing Mayor Virg Bernero says the committee will come up with short-term and long-term proposals for dealing with the city’s financial problems.

Former mayor David Hollister will chair the committee.

Lansing mayor Virg Bernero plans to tell the city council tonight how he plans to cut nearly five million dollars to balance the capital city’s budget.

That fact that Lansing is only facing about a five million dollar budget gap next year is actually good news.   Last fall, the mayor’s office was predicting the city might be facing up to a 15 million dollar shortfall.

But Mayor Bernero says voter approval of a special public safety millage, lower health care costs and more state revenue sharing money than expected has improved Lansing’s revenue picture.

The state and several local governments are getting more than $2.5 million from Gun Lake Casino. It’s the first revenue-sharing payment since the casino opened in February.

More than $500,000 goes to one city, six townships, Allegan County and a public school district near the casino about 30 minutes south of Grand Rapids.

Wayland Township Supervisor Roger VanVolkinburg is not the only one who underestimated how big the first check would be.  

“Well my estimate was $200,000 years ago so it’s was a little off. (laughs) I’m sorry.”

Lansing mayor Virg Bernero says he's presenting his 2012 fiscal year budget plan with a heavy heart. The city is facing a $20 million budget gap next year. Bernero says this requires a tough and painful response. 

He's proposing eliminating 200 positions. One hundred and thirty of these jobs are currently filled. Bernero's budget fall particularly hard on the city's public safety department. More than 50 Lansing police officers would be laid off and three fire stations will be closed under Bernero's budget. Bernero says he doesn't relish cuts, but with employee costs being the largest part of the city's budget, he has little choice. 

Bernero says the need for deep spending cuts might be lessened if state revenue sharing is not as deep as proposed by Governor Snyder. He says Lansing voters could help as well if they approve a millage increase on the May 3rd ballot.  

But Bernero says he has to propose a budget now with the "cards" the city's been dealt. Bernero says the city has already made all the easy cuts.    

Winter's not over yet

Much of Michigan is under a winter storm warning as cold air and moisture head our way. The storm, which will bring snow, sleet, ice, and rain, is expected to start tonight around 7 or 8pm. The National Weather Service (NWS) says the winter storm warnings and watches are in effect until Wednesday night:

Significant icing of power lines and tree limbs is possible tonight and Wednesday. Roads will likely become ice covered...making travel dangerous by the Wednesday morning commute.

City leaders react to Governor Snyder's revenue sharing plan

Governor Rick Snyder unveiled his ideas for sharing state revenue with local governments yesterday. As Michigan Public Radio's Rick Pluta reported, Snyder's plan would "withhold some state aid to local governments unless they make plans to consolidate services and make their finances more open."

Snyder also called for labor negotiation and pension reforms at the local level.

The Detroit Free Press has reaction from some local leaders:

Robert Cannon, supervisor of Clinton Township, said his community has made some of the changes Snyder recommends. But he doesn't like linking revenue sharing to the outcome of bargaining with employee unions...

Royal Oak City Manager Don Johnson said his city has accomplished some of what Gov. Rick Snyder wants to see in trimming the cost of government...

"Some of our groups have been very cooperative, others not so much, but more and more they're coming to terms with economic realities," Johnson said.

Although he agrees with most of Snyder's plan, he said it may be difficult for some to achieve the results the governor wants.

Detroit Mayor Dave Bing said the reduction would be "a serious impediment to our progress," noting that the city has whittled down an accumulated deficit of $330 million to $150 million.

"I recognize the need for shared sacrifice. However the state must step up to provide local governments like Detroit the tools we need to make the fundamental changes necessary," Bing said in a statement.

Automakers feeling ripple effect from Japan disaster

A new report from IHS Global Insight says every major automaker will be affected by the disaster in Japan in the coming month.

From the Detroit News:

"It is not a matter of if, but when," said Michael Robinet, IHS's Director of Automotive Forecast, in an analysis of the impact of the disaster that halted domestic vehicle production and affected the parts supply chain.

The ripple effect is already being felt at plants around the world but Robinet expects the impact to grow in the coming weeks and months because many automakers rely on Japanese-sourced components such as semi-conductors, integrated circuits, sensors and LCD displays.

Many of those parts were in short supply before the disaster.

Governor Rick Snyder has outlined a plan to withhold some state aid to local governments unless they make plans to consolidate services and make their finances more open. The governor says he wants to create new incentives for communities to save money and become more efficient.

He would revamp how the state shares tax revenues with cities and townships to reward those that come up with cost-savings.