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Monday, March 21, 2011

'Shared Sacrifice', Gov. Snyder unveils Michigan's restructuring plan for state revenue 3/21


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Former CEO of bankrupted Gateway
Computers, now Gov. of Michigan, Rick
Snyder (R) will inform cities about his
'shared revenue' plan on 3/21.
Michiganders will learn about a new radical way that Michigan Gov. Rick Snyder (R) expects revenue to be generated in this state, as he will deliver his much-anticipated message on community development and local government reform on Monday, March 21st.

Snyder include restructuring state revenue sharing for local communities, which will cut revenue from many Michigan cities, townships and countries; leaving some on the brink of bankruptcy during his 9:30AM press conference at Grand Rapids City Hall.

Last month, Governor Snyder delivered a harsh blow to local officials across Michigan last month when he unveiled a state budget proposal calling for deep cuts in funding, as he has proposed the elimination of nearly $300 million in statutory revenue sharing payments for all municipalities starting in the October 1st fiscal year.

Governor Snyder proposes instead incentive-based revenue sharing program that would make a lesser, $200-million pot of money available those municipalities whom meet certain standards and adopt "best practices." 

One township entity in Michigan, Ypsilanti Township, revealed its’ last Board of Trustees public meeting on Tuesday, March 15th that the Township will lose $447,047 in state shared revenue under the Snyder plan.

In an effort to cut costs ahead of the loss of state revenue, the Board of Trustees eliminated for the time being, filling an administrative position designed to assist Treasurer Larry Doe comply with preparation of the assessment of summer and winter properly taxes. The position, which would have paid $15.00 an hour full time will be, combined between work load of other current staff members.

State Rep. Jeff Irwin, D-Ann Arbor, said that he is hoping Snyder will stay true to his word and properly reward communities that already have made progress in the area of intergovernmental shared resource services.
"I haven't heard any details about what he's going to propose specifically, but I know many people are on the edge of their chairs to find out what exactly he means by this incentive-based revenue-sharing model," Irwin said to the Ann Arbor News.
"It could be a good idea and it could be set up in ways that benefit communities like Ann Arbor or Washtenaw County that have worked hard to consolidate services. But I don't know the details. I'm interested to see them", he noted.
Snyder's state budget proposal equates to a $92.1 million, or nearly a one-third reduction in statutory revenue-sharing funding. There still would be a $25.5 million or 4 percent increase, for a total pot of $659 million, in constitutionally protected revenue sharing payments to local units of government next year, based on estimated sales tax collections.

60-page copy of Snyder's executive recommendation for revenue sharing reductions shows Ann Arbor would lose $1.7 million, up to 18.3 percent of its total. Other Southeastern Michigan cities besides Ypsilanti Township and Ann Arbor would be taking cuts also. Ypsilanti would lose nearly $1.2 million or about 44.3 percent of its total payments, the city of Saline would lose $124,447, Milan would lose $50,490 and Chelsea would lose $62,898, the document shows.

On Monday, Gov. Snyder will reveal how much each individual community could potentially earn back depends on what performance metrics Snyder lays out on Monday.


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