CHICAGO — Michigan is putting the word out to fiscally struggling municipalities that a $5 million grant program is available to help fund special projects that could help free up tax revenue for key services.
Local governments can apply for the Financially Distressed Cities, Villages, and Townships grant program by submitting an application to the Department of Treasury by 11:59 p.m. on Thursday, Oct. 15, according to a news release published Aug. 19.
Cities, villages, and townships, experiencing at least one condition of "probable financial distress" as outlined under the state's Public Act 436 of 2012, the Local Financial Stability and Choice Act, are eligible to apply.
"This program offers critical assistance to municipalities facing significant financial difficulties," Gov. Rick Snyder said in the statement. "Grant dollars can help troubled cities, villages, and townships fund projects which, in turn, frees up valuable tax dollars for other critical services that benefit residents and taxpayers in those communities."
Recipients can use the grant funding for specific projects, services, or strategies that move the city, village, or township toward financial stability. Preference is given to local government applicants that have received a financial emergency declaration in the past five years, have an approved general fund deficit elimination plan, or meet two or more conditions indicating "probable financial distress" currently exist.
Conditions of "probable financial distress" relating solely to school districts are not included as conditions for Financially Distressed Cities, Villages, and Townships, as school districts are not eligible, the news release said.
