Report: MI Cities Lost 12 Percent Of Their Revenue In 15 Years
A Michigan public policy research firm says long-term disinvestment by the state is hurting municipal revenues.
A report by Lansing-based Public Sector Consultants surveyed 225 Michigan cities. It finds state revenue sharing payments and municipal property tax revenues have fallen substantially since 2002.
PSC vice-president Tim Dempsey says on average, Michigan cities are operating with 12 percent less revenue today than they did 15 years ago.
“When you have a 12 percent overall revenue decline, that’s pretty substantial,” says Dempsey. “If you equate that into your own household budget, imagine what that would mean for you as an individual or as a family.”
The Michigan Municipal League says many cities have been forced to cut police, fire and infrastructure services to offset their losses.
The report’s authors say they hope it will be a call to action for state lawmakers to restore revenue sharing payments to at least their 2011 levels.