Michigan Investment in Municipalities Worst in Nation – By Far, Census Data Shows

The League's Anthony Minghine discusses revenue sharing during the news conference Monday afternoon.

The League’s Anthony Minghine discusses revenue sharing during the news conference Monday afternoon.

How bad is the municipal finance situation in Michigan? It’s the worse in the nation over the last decade, according to new data unveiled at a Michigan Municipal League news conference Monday, March 21.

And the culprit? State policies and politicians who have ignored the needs of cities, in the process damaging the state’s overall economy.

U.S. Census data shows Michigan is the ONLY state in the nation where municipal revenues overall declined from 2002-12 (the most recent information available).

Across the state, municipal revenues were down by 8.63 percent over that period, led by a 56 percent reduction in state revenue sharing.

Meanwhile, overall state revenues increased 39 percent. The numbers show that the state balanced its budget on the backs of cities.

The successful news conference was covered by multiple news outlets and also was live-streamed.

savemicity-large-websticker-72dpiView articles by the Detroit News, Gongwer, the Associated Press, Crain’s Detroit Business, the Detroit Free Press, MIRS News Service and WDET radio. The Free Press report is a column by Nancy Kaffer and does a particularly good job explaining the plight of cities.

You can see all the details at SaveMICity.org, a new web site the Michigan Municipal League has set up to provide information about the severity of the municipal finance problem facing Michigan, and offer solutions over time.

The website also has a new data base showing the revenue sharing dollar amounts diverted from every community in the state from 2002 to 2015.

More than $7.5 billion has been diverted statewide in that time period. Look up your community’s information here.

One of the many charts showing how Michigan has disinvested in its cities more than any other state in the state. That tiny red line you see is Michigan.

One of the many charts showing how Michigan has disinvested in its cities more than any other state in the state. That tiny red line you see is Michigan.

“Our cities are facing desperate conditions,” said League CEO and Executive Director Dan Gilmartin.

And he pointed to “fundamentally flawed” state policies providing for municipal finance, including massive cuts in revenue sharing since 2002, limits on assessment increases, but none on decreases, and other punitive state policy decisions.

Across America, the statewide average increase in municipal revenues was more than 40 percent.

The state with the next worse municipal finance revenue growth was Ohio, and there revenue grew by 25.7 percent. Around the nation, the average increase was more than 40 percent.

League Associate Executive Director and COO Tony Minghine has been leading a task force of League members and staff in examining the situation and brainstorming solutions. Minghine explained at the news conference that state policies have led to “strategic disinvestment” by cities, as they struggle to balance budgets in the face of declining revenues. He asked rhetorically whether Flint might have been able to avoid its man-made water contamination catastrophe if it had received the $63 million in revenue sharing withheld by the state since 2002 as a part of state budget balancing.

Minghine said more revenue is just one part of the League’s plan to be laid out in coming months, to try to address the pressing situation. He said cities will ask for legislative approval to address cost issues and look at the structure of local services in ways that are today prohibited by state law.

Another chart showing how Michigan has disinvested in its cities more than any other state in the state.

Another chart showing how Michigan has disinvested in its cities more than any other state in the state.

Wayne Mayor Susan Rowe showed how the situation is facing her city, which has seen revenue sharing cut by a cumulative $7.8 million since 2002 and has lost millions more in tax base due to decisions made at the state level regarding assessment practices. Wayne has laid off half its police force and still will run out of money in 2017. “We need the state to keep its promises to cities,” she said.

Mitch Bean of the Michigan Economic Consulting Group minced no words in putting the current plight of many cities on state policies. He pointed out that the combination of the Headlee Amendment to the state constitution and Proposal A allow assessments to drop during hard times, but limit their growth during good times. As a result, even a relatively well-off community like Farmington Hills, which saw assessments drop 30 percent from 2008 to 2012, will likely not see its tax base return to 2008 levels until 2025.

Why should state policymakers care about what they are doing to cities? Shanna Draheim of Public Sector Consultants, which has prepared a new report “Creating 21st Century Communities, Making the Economic Case for Place” said the result of these state decisions is that Michigan cities are lagging successful communities in attracting new talent. And that means the state is lagging in that vital category. You can see it in state personal income data, where Michigan has gone from a top 15 state to a bottom 15 state in per capita income since 2000.

Speakers during Monday's Michigan Municipal League press conference in Lansing. From left, Mitch Bean, Wayne Mayor Susan Rowe, Eric Lupher, Anthony Minghine and Dan Gilmartin.

Speakers during Monday’s Michigan Municipal League press conference in Lansing. From left, Mitch Bean, Wayne Mayor Susan Rowe, Eric Lupher, Anthony Minghine and Dan Gilmartin.

“States that have invested in cities are doing the best. They are growing economically. Michigan has the opportunity to do the same,” said Draheim.

But not unless we make some major changes to the state’s municipal finance policies, in a way that will let cities create the safe, walkable, fun locations that people want to move to. Until that happens, all of Michigan will suffer as the state’s economy sputters and fails to provide the public goods and economic opportunities that benefit all of us, whether we live in a big city, or rural township.

Matt Bach is director of media relations at the Michigan Municipal League. He can be reached at mbach@mml.org and (734) 669-6317.

League CEO Dan Gilmartin to Speak at Congressional Briefing on Flint Water Crisis

Dan Gilmartin is interviewed during the NLC Congressional City Conference in Washington D.C. this week.

Dan Gilmartin is interviewed during the NLC Congressional City Conference in Washington D.C. this week.

WASHINGTON, D.C. – Michigan Municipal League CEO and Executive Director Dan Gilmartin will participate in a Congressional Capitol Briefing Wednesday in Washington D.C. and talk about national infrastructure issues and the Flint water crisis.

Gilmartin will be part of a panel that will inform members of Congress about the most pressing infrastructure issues facing cities today. They also will delve into whether federal policies are keeping pace with local efforts to reevaluate and reconfigure infrastructure for the next generation. More than 200 members of Congress and congressional staff are expected to attend the event taking place 10 a.m. Wednesday, March 9, 2016, at the Capitol Visitors Center Auditorium. The briefing is part of the National League of Cities annual Congressional City Conference happening this week.

Through his work with communities, Gilmartin is recognized as a national leader in the fields of urban revitalization, placemaking, local government reform, and transportation policy.  Model D Media has referred to him as “an urban thinker with an eye for the small, oft-unnoticed changes that can make ‘places’ out of streets and buildings.”  Dan serves as a member of the Michigan Future, Inc. Leadership Council and on the Placemaking Leadership Council.

Joining Gilmartin on the panel will be other local experts who will discuss the water crisis in Flint and what it means for federal-state-local relations nation-wide; contrasting state and local perspectives on accountability in the transit funding process; competing public and private interests in the broadband market; and differing federal and local points of view on infrastructure finance.

Other speakers include Mayor Mark Stodola, of Little Rock, Arkansas; Councilmember Greg Evans, of Eugene Oregon; and Councilmember Andy Huckaba, of Lenexa, Kansas.

NLC is the nation’s largest and most representative membership and advocacy organization for city officials, comprised of more than 19,000 cities, towns, and villages representing more than 218 million Americans.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org.

League, other organizations to Governor Snyder: VETO SB 571

Dearborn Mayor and League President Jack O'Reilly discusses SB 571 during a news conference Tuesday, Jan. 5, 2016.

Dearborn Mayor and League President Jack O’Reilly discusses SB 571 during a news conference Tuesday, Jan. 5, 2016.

Governor Rick Snyder needs to veto a campaign finance bill sitting on his desk that would create more problems than it attempts to solve.

This was the basic message of a well-attended news conference Tuesday at the Michigan Municipal League’s Lansing office about SB 571. The event was covered by nearly a dozen members of the media, including radio, TV and print/online. Read articles about the news conference by: the Detroit News, mlive.com, WLNS TV, WILX TV, WOOD TVLansing State JournalDearborn Press & Guide, WSJM radio and subscription news services Gongwer and MIRS. The League’s call to veto this bill (read details about that here from the League’s Chris Hackbarth) seems to be gaining momentum.

Check out this Kalamazoo Gazette article that quotes some Republican lawmakers who are having second thoughts about approving SB 571. View this Detroit News editorial calling for a veto.

Rochester Hills Mayor Bryan Barnett discusses SB 571 during a press conference Tuesday,

Rochester Hills Mayor Bryan Barnett discusses SB 571 during a press conference Tuesday,

Senate Bill 571 passed the legislature on Dec. 16 with some extensive last-minute revisions. The bill expanded from 12 pages to 53 pages, but the very last change is the one we had the press conference about. Section 57 of the bill would prevent public entities from distributing information about a ballot proposal in the 60 days before an election.

“In other words, in the weeks before an election we cannot use a mailing or local cable outlets to inform our constituents if a measure will raise or lower their tax rate, who it will affect, if it will mean the community will be selling a piece of property and where it is, how a charter change will affect them or anything else,” said Dearborn Mayor Jack O’Reilly, president of the Michigan Municipal League.

The legislation would prohibit them from distributing public notices on television, radio and in print media explaining property tax proposals, school bond issues or changes in a local charter.

Orion Township Supervisor Chris Barnett discusses SB 571.

Orion Township Supervisor Chris Barnett discusses SB 571.

“Local officials wouldn’t even be able to tell voters in their newsletter who’s running for city council,” said League CEO and Executive Director Dan Gilmartin.

Chris Barnett, supervisor of Orion Township, said the legislation amounts to a “gag order” on election officials 60 days prior to an election.

“What (voters) expect me to do is answer questions and give them information,” Barnett said.

Republican Rochester Hills Mayor Bryan Barnett said perhaps this is a legislative effort to stop tax increases, but that’s not what’s going on in his community. Over the past four years the largely conservative community has considered seven ballot proposals, and only one was a tax increase.

To educate voters on these issues, which are often complicated, Rochester Hills government has turned to YouTube and public access television. But the line could get blurry.

“Can I respond to a resident asking a question about a millage proposal? It’s very concerning,” Barnett said.

A large amount of media attend a news conference Tuesday on SB 571 at the Michigan Municipal League's Lansing office.

A large amount of media attend a news conference Tuesday on SB 571 at the Michigan Municipal League’s Lansing office.

That concern was echoed by Democratic Dearborn Mayor John O’Reilly, who said “we’re going to end up having a lot of effort made trying to interpret where that line is.”

Governor Snyder has until Jan. 11 to decide whether to sign or veto the bill and already some Republican lawmakers who initially voted for it are saying it might be worth a second look. Read these articles from the Kalamazoo Gazette and Holland Sentinel that talk to lawmakers willing to revisit the bill.

The press conference was emceed by League CEO and Executive Director Dan Gilmartin and featured League Board President and Dearborn Mayor Jack O’Reilly, Rochester Hills Mayor Bryan Barnett and officials representing the Michigan Association of Counties, the Michigan Townships Association, Michigan Sheriffs Association, Middle Cities Education Association, Michigan Association of School Administrators, Michigan County Roads Association, Michigan Association of School Boards, Michigan Infrastructure and Transportation Association, and the League of Women Voters. View a joint press release about the issue.

League CEO and Executive Director Dan Gilmartin kicks off a news conference on SB 571.

League CEO and Executive Director Dan Gilmartin kicks off a news conference on SB 571.

We had nearly a dozen members of the media attend including two Lansing TV stations, Michigan Public Radio, Gongwer, MIRS, mlive, Lansing State Journal, Detroit News and Detroit Free Press.

The League along with numerous communities and organizations have sent letters to Governor Snyder asking him to veto the bill. Read the veto letters from: the League, Michigan Association of Counties, and the Michigan Townships Association.

You can register your opinion about this bill with Governor Snyder during regular business hours at (517) 335-7858. Or go to https://somgovweb.state.mi.us/GovRelations/ShareOpinion.aspx.

Excerpts from articles in mlive and Detroit News about the news conference were including in this blog post.

Matt Bach is Director of Media Relations for the Michigan Municipal League. He can be reached at mbach@mml.org and 810-874-1073.

Transportation Asset Management Fall Conference

The Annual Fall Asset Management Conference will be taking place in Escanaba, Michigan on Thursday October 24th. This will be a great opportunity for you or DPW/City Engineer to get caught up to date on the latest in Transportation Asset Management. Michigan Municipal League Executive Director Dan Gilmartin will be participating in a panel discussion outlining the views of MML on various transportation issues. The brochure for the conference can be found below.

2013 Fall Asset Management Conference Brochure

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

 

League Encourages State to Put Surplus Toward Restoring Revenue Sharing Cuts

LANSING, Michigan – A report saying the state of Michigan has nearly $400 million has the Michigan Municipal League requesting that the state use some of that surplus to restore massive cuts made to local revenue sharing. A consensus report released today (May 15, 2013) by state economists shows that revenues for the current fiscal year are $396.9 million higher than expected for the general fund for the current 2012-13 fiscal year.

The Michigan Municipal League has responded to this announcement by issuing a press release to media throughout Michigan calling for a portion of that surplus to go back to Michigan communities. View the League’s press release here. View an mlive.com article about the budget surplus that includes mention of the League’s request.

Here’s a portion of the press release:
“Over the past dozen years, the Legislature and governor have cut local revenue sharing by more than $6 billion, breaking promise after promise and ignoring statutes that require the appropriations to local communities,” said Daniel Gilmartin, CEO and executive director of the Michigan Municipal League, in the press release. “Instead of appropriating the funds for local services, Lansing used the funds to fill holes in the state budget, to cut taxes, and for other state programs and services. While we recognize the state’s economy was in bad shape, and many state budgets were cut, local revenue sharing paid a far higher price than all the others.”

Gilmartin said the state budget surplus gives the Legislature and governor the opportunity to return some of the cuts they made to local services that keep people safe in their neighborhoods, keep local drinking water clean, maintain local roads and bridges, fund local parks and libraries, and more.

“The state Senate has proposed a 4.8-percent increase in local revenue sharing for the 2014 state budget. Given the anticipated state budget surplus, anything less than that is unacceptable and unconscionable,” Gilmartin said. “I promise that local leaders and their constituents will remember if the Legislature fails to invest part of the surplus to restore some of the massive cuts Lansing has made to revenue sharing and essential local services.”

Gilmartin said that using the surplus to restore cuts to revenue sharing “becomes critical” if the personal property tax (PPT) law passed by the Legislature in December is approved by Michigan voters next year.The PPT law would cut local taxes paid by local businesses to local communities across the state by hundreds of millions of dollars. The law will not take effect unless it is approved by Michigan voters in August 2014. The Legislature has not yet voted to put the question onto the ballot.

Matt Bach is director of communications for the Michigan Municipal League. He can be reached at (810) 874-1073 and mbach@mml.org.