Michigan News
9:49 am
Mon June 9, 2014

Local Governments May Get Smaller Boost Than Hoped

Local governments in Michigan may get a smaller increase in state revenue sharing than hoped.

Gov. Rick Snyder proposed a 15 percent increase in statutory shared revenue. But House Republicans say a budget agreement includes a 5.5 percent boost in statutory revenue sharing for cities, townships and villages — not including $8 million for financially distressed local governments.

Municipalities also are expected to get 3 percent more next year in revenue-sharing payments guaranteed under Michigan's constitution. A House-Senate committee plans to approve the budget plan Monday.

The Snyder administration said last week revenue sharing would stay "pretty close" to what Snyder proposed. But it's looking like that may not be the case after revenue estimates were revised downward recently.

Snyder's plan to significantly boost payments to counties is intact.