revenue sharing

Investigative
7:00 am
Mon March 10, 2014

Being broke makes Detroit get creative

Credit Lester Graham / Michigan Radio

Detroit's municipal bankruptcy has made the world aware of what Michigan already knew. Detroit is broke. No matter how it turns out, bankruptcy is not going to change things very quickly. Detroit will still be broke. That’s going to force the city to get creative.

Let’s get one thing out of the way: the state of Michigan is not going to bail out Detroit.

And the state of Michigan is not going fully restore revenue sharing from the sales tax with cities such as Detroit.

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Politics & Government
5:58 am
Tue March 4, 2014

Flint mayor says state lawmakers should boost revenue sharing

Mayor Dayne Walling delivered Flint’s “State of the City” speech yesterday.
Steve Carmody Michigan Radio

Flint’s mayor says his and other Michigan cities need more revenue sharing dollars from the state.

Mayor Dayne Walling delivered Flint’s “State of the City” speech yesterday. Walling outlined a lot of plans for Flint's future. But he says, without more money from the state, delivering basic services will continue to be a struggle.

“Our local communities were the ones that took the longest, most permanent cuts. And we need to be first in line,” says Walling.

But revenue sharing does not appear to be high on the legislative agenda in Lansing.

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Politics & Government
6:07 pm
Sat February 8, 2014

Gov. Snyder wants boost in local revenue sharing

Cuts in revenue sharing can lead to fewer police and firefighters and other cutbacks in local services.
Steve Carmody Michigan Radio

LANSING, Mich. (AP) - Local governments bore steep cuts in state revenue-sharing payments in the 2000s as sales tax collections lagged and lawmakers siphoned off money to deal with budget deficits.

Now as the economy recovers and the budget stabilizes, Michigan Gov. Rick Snyder is proposing a 15 percent increase in the next budget.

He once cut statutory shared revenue to cities and townships by a third.

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Lansing
6:40 pm
Wed September 12, 2012

Lansing's financial health will be reviewed by panel appointed by the mayor

Former Lansing mayor David Hollister (right) speaks during a news conference. Mayor Virg Bernero (left) announced the formation of a panel to study the city's financial problems.
Steve Carmody/Michigan Radio

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.

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Lansing
1:01 am
Mon March 26, 2012

Doing "less with less" in Lansing

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.

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Economy
4:25 pm
Thu June 2, 2011

Gun Lake Casino’s first payout to state, local governments top expectations

Wayland Township Supervisor Roger VanVolkinburg accepts a check Thursday from Gun Lake Casino.
Lindsey Smith Michigan Radio

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.”

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Politics
7:13 pm
Mon March 28, 2011

Lansing mayor proposes eliminating 200 city jobs

Lansing mayor Virg Bernero delivers his budget address during a meeting of the city council
(photo by Steve Carmody/Michigan Radio)

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.    

News Roundup
9:00 am
Tue March 22, 2011

In this morning's news...

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.

Politics
11:37 am
Mon March 21, 2011

Governor Snyder rolls out plan to reform local government

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. 

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Politics
8:24 am
Mon March 21, 2011

In this morning's news...

user brother o'mara Flickr

UAW leaders say battle could lie ahead in contract negotiations

After giving into concessions during the auto industry's restructuring, union leaders are saying they want some things restored. From the Detroit Free Press:

As the UAW prepares to head into labor talks this summer with the newly profitable Detroit automakers, several top union leaders say a showdown is brewing over this year's contract -- especially at Ford, which has made $9.3 billion over the past two years.

"If they don't restore everything (we) gave up, the membership is going to knock it down," said Bill Johnson, plant chairman for UAW Local 900, which represents workers at the Focus plant in Wayne. "The bonuses that were just announced are just ridiculous."

Snyder to go over local government revenue sharing plan this morning

Governor Rick Snyder will go over his plan for revenue sharing with local governments at a 9:30 a.m. press conference in Grand Rapids.

His budget calls for a $100 million cut in revenue sharing with local governments, and, according to the Detroit News "would make local governments compete for the remaining $200 million, based on their adoption of "best practices" Snyder sets out today."

The Governor is expected to go over plans for local school districts as well today. From the Detroit News:

For school districts, Snyder's budget proposed a cut of about $300 per-pupil on top of an already announced $170 per-pupil cut.

Snyder told school districts in his budget message that for fiscal year 2013 he would set aside $300 million and make it "available to eligible school districts whose employees' share of health insurance costs is comparable to that of state employees."

Details on how that works are also to be announced today.

 

Michigan men's teams out of the tournament, women play on

The University of Michigan men's basketball team lost a close one to defending national champion Duke yesterday. Tim Hardaway Jr. pulled the team close when he hit three baskets down the stretch. Michigan was 2 points away from overtime when Darius Morris' floating jump shot in the lane missed, hitting the back of the rim. Morris said he thought the shot was going in - from the Detroit Free Press:

"I thought it was down," Morris said in the locker room, breathing heavy, trying to compose himself after postgame tears. "I thought we were going to overtime."

The University of Michigan was the last Michigan men's basketball team standing in NCAA tournament, Oakland University and Michigan State University lost close games in the opening rounds.

In the women's NCAA tournament, Michigan State University advanced by beating Northern Iowa yesterday, they'll play Green Bay tomorrow night.

Flint
3:13 pm
Tue March 15, 2011

Flint can issue bonds to address deficit, still more to do

The city of Flint has scored a partial victory in its efforts to get its city budget deficit under control.   But there is still more work to do. The city of Flint is looking at a projected $17 million budget deficit.  

City leaders had asked the state for permission to sell $20 million in bonds to stabilize Flint’s budget. But the state only approved  $8 million in bonds. The Flint City Council must still approve the $8 million bond issue. 

Flint mayor Dayne Walling says that will help get the city through the current fiscal year. Flint has already laid off dozens of city employees, including police officers. 

But Walling says Flint may need to cut $12 million in city spending next year. The mayor says a proposed change in state revenue sharing could force evcen deeper cuts next year.

“We of course need to see where the state finally comes down with state revenue sharing when they’re through with their budget process.  Of course the legislature will have its say on the governor’s proposal.”

Flint, like other Michigan cities, stands to lose millions of dollars under the governor’s proposed changes to state revenue sharing.

Politics
4:43 pm
Thu January 27, 2011

Proposal calls for revenue sharing based on population

Proposals for different ways the state delivers payments to local governments for services are bubbling up at the state Capitol.

A bill in the state Senate would distribute revenue sharing payments to cities, townships and villages based on population.

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Politics
5:09 pm
Wed January 26, 2011

Michigan Municipal League calls for region-based taxes

Michigan’s local governments say if the state cuts revenue sharing, then they should be allowed to ask voters for new taxes to replace that money.

The Michigan Municipal League met with Governor Rick Snyder last week, and has answered his call for proposals to save money and cut costs for local governments, and to make communities more viable and attractive.

Dan Gilmartin is executive director of the Municipal League. He says it starts by looking at regions:

Economies in Michigan are regional. The dirty little secret is there is no state economy. And there’s certainly no local economy. Economies are regional.

Gilmartin says local governments need the authority to ask voters for region-based taxes to support development, and maintain roads and services.

Investigative
6:12 am
Mon January 17, 2011

Will cities, villages and townships lose revenue sharing again?

Lawmakers in Lansing may have to cut revenue sharing with local governments to fill the $1.8 billion budget hole.
Lester Graham Michigan Radio

The money the state sends to local governments is called revenue sharing.  But "sharing" might not be quite the right word.  It’s actually a promise, a deal the state made with the towns we live in. 

Summer Minnick is with the Michigan Municipal League.  It represents the interests of the cities, villages and townships to state leaders.  She says decades ago, local governments gave up the power to charge their own sales tax to raise money.

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Lansing faces budget problem
4:07 pm
Mon December 20, 2010

City of Lansing facing $15 million budget deficit in FY12

The seal of the city of Lansing, Michigan
(photo by Steve Carmody/Michigan Radio)

The City of Lansing is facing a potential $15 million budget deficit.   City Finance Director Jerry Ambrose says there is a growing chasm between Lansing’s projected spending needs fiscal year 2012 and the city’s projected revenue. FY2012 begins June 30th, 2011.  Ambrose says the city expects to spend $118 million next year delivering city services, but city revenues are only expected to reach $103 million. Ambrose says in a written statement:

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