Michigan has diverted more than $4 billion in state revenue that was intended for local governments in order to balance its budgets over the last few years, according to the Michigan Municipal League.
The group last week released a report responding to Gov. Rick Snyder’s call for local governments to consolidate services or face more cuts in state aid. The league is asking lawmakers to enact a series of reforms it says will make it easier for cities and towns to share services and not to link service sharing with revenue cuts.
Snyder is expected to unveil more details on his plan for the state’s revenue aid formula Feb. 17 when he presents his 2012 budget to the Legislature.
Meanwhile, the league is lobbying members to oppose a bill that would eliminate the state’s personal property tax. The bill, which the committee is considering along with a bill that would eliminate the unpopular Michigan Business Tax, is tentatively scheduled to be heard before the Senate Finance Committee Wednesday.
The league recommended that officials contact their local lawmakers “to let them know the devastating impact eliminating the personal property tax would have on your community should it get enacted without a replacement for the revenues.”