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CRC recommends new approaches to state revenue sharing

If you track how the state of Michigan spends its money, you're aware that much of it  goes to cities and municipalities. Eight days ago, Governor Snyder proposed an increase of $24-million in the states next budget be assigned to revenue sharing for cities, townships and villages. That would make a total of $788-million. Another $214-million would go to counties.Revenue sharing in Michigan dates back to 1939. Local governments have wide latitude over how they spend the money. However, the challenges and the circumstances facing the states 500 cities and villages vary widely. All are obligated to provide services, but a number have struggled with insolvency. Others with stronger tax bases enjoy more stability.

Is there a better way to do revenue sharing in our state?

That's a question the Citizens Research Center of Michigan just tackled. It presented its report “Reforming Statutory State Revenue Sharing” yesterday to legislators.

In our monthly visit with the CRC of Michigan, Current State talks with the organization’s Eric Lupher about why revenue sharing is in need of reform.

Kevin Lavery served as a general assignment reporter and occasional local host for Morning Edition and All Things Considered before retiring in 2023.
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