Tag Archives: budget

Governor’s Transportation Budget Does Not Include Long-Term Funding Solution

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The Governor has release his annual budget recommendations but they did not include a long-term solution for transportation funding. The budget included $3.4 billion in ongoing funding and $254 million in on-time general fund spending for 2015.

The $254 million in general fund dollars will be split into two areas. Current transportation revenues are no longer sufficient to match all of Michigan’s available transportation aid. A total  of $139 million will be used to leverage federal dollars. The remaining $115 million will be used for state trunkline road and bridge projects.

The Governor states that he is still committed to securing a comprehensive transportation funding solution. The League appreciates his commitment to the issue but what we need is action. For to long we have neglected our infrastructure in this state and our local communities and their residents are bearing the cost as a result. It is time to address this issue and the League is fully committed to helping find a solution. An investment in our local infrastructure is critical for our state to thrive.

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.

Get by with a little help from your friends

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I applaud the City of Detroit and the State of Michigan for making everyone a winner with the Belle Isle lease agreement.  The deal for the state to lease Belle Isle relieves the city of the substantial cost of maintaining the park, and opens the door for significant improvements to this tarnished gem making it an even greater asset to the city.  Residents and visitors to Detroit alike should be thrilled with this announcement as everyone stands to benefit.  So what lessons can we all take a way from this historic agreement?

Lesson one:  Put your good sense ahead of your pride.  It sounds easy, but that can be tough to do and takes a fair amount of courage.  This decision was not a slam dunk.  Not because it didn’t make sense, but because many felt that if the city doesn’t directly manage the park, then it must be a loss for the city. It wouldn’t have been a loss of money, improvements or access, those all improve.  None of that made the decision any less difficult.  Fortunately all involved had the vision to see that allowing the state to be a partner with the city improves Belle Isle for everyone.

Lesson two: Do what you do best.  Belle Isle is a major park that requires a huge continuing investment. Even though it is utilized by many folks outside the city, Detroit bore the full financial burden. In short Detroit was not set up to succeed on this one. The State has more resources, manages large parks, and is actually pretty good at it. The city is far better served by focusing their energy and financial wherewithal on other areas of the city’s operation. They can now put added emphasis on neighborhood parks, public safety or other key areas.

Lesson three:  The Stockdale paradox – Confront the brutal truth of the situation, yet at the same time never give up hope.  Like so many municipalities in Michigan, the City of Detroit is faced with some very difficult financial circumstances.  It serves no one’s purposes, especially your residents, to ignore the reality that we all face.  Confront it and utilize all the resources at your disposal to craft a plan that keeps your community moving forward.

My father always told me, “don’t cut off your nose to spite your face”, and it seems appropriate in this circumstance.  To have let this opportunity pass would have served no one.  We should all learn from the leadership shown here to be open to new ideas, even if that idea stings a little at first.  Maybe that idea is in the form of a partnership, or even a hand off.  If in the end our residents are better served, then we have done our job. Kudos all around!

Can you afford to cut training from your budget?

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An all too frequent casualty of tightening budgets are the dollars spent on training.  It seems painless.  There is no immediate manifestation of a service cut, or elimination of a position so it on a relative basis it seems like a good cut to make.  But what is the cost of what you don’t know?  What is the impact of not being aware of innovations that would provide more efficient operations and lessen the budget constraints?  I would suggest that these costs far outweigh the cost of the training.

We are all being asked to do more with less, or as I have heard some folks express recently, to do something with nothing.  How does anyone expect to succeed in this environment without providing themselves the opportunity to train and network with their peers? Elected and appointed officials are tasked with running very complex, multifaceted corporations.  In the case of  elected officials, most begin office with a love for their community but little to no training or experience about the role they are accepting.  That is not a formula for efficiency and innovation, it’s a formula for disaster.

Every successful business understands the fundamental need to train their employees,   but we somehow diminish that same value when it comes to our local operations.  Training and networking are not perks , they are a necessary part of any successful business.  Don’t short change your community by taking a short term solution to a long term problem.  You have a duty to take the necessary steps to be certain you are in a position to succeed. A big part of that is sowing the seeds of innovation and efficiency with appropriate educational and networking opportunities.

Imagine if your community never learned about computers, the internet, or email.  Think about the cost it would take to deliver services without the benefit of these innovations.  Are you up to speed on grants? Economic development laws and practices?  Service delivery models?  Laws pertaining to setting rates and charges?

What’s the future cost of what you don’t know about today?  It might shock you!