Opening Session Sets the Stage for Municipal Finance Reform

Moving Toward a Brighter Future for Flint

Flint-Mayor-Karen-Weaver-DSC_1510-300x200The infrastructure in many Michigan cities is crumbling, in large part due to disinvestment by the State of Michigan in its communities. Flint’s water crisis is a perfect example of what can happen to a city when it doesn’t have adequate financial resources to provide basic services. So when Flint Mayor Dr. Karen Williams Weaver rose to speak at the Capital Conference’s opening session, she immediately grabbed the audience’s attention.

What followed was an eloquent synopsis of Flint’s water crisis and the city’s resolve to recover from this disaster. Mayor Weaver stressed that Flint deserves and demands accountability, but she’s primarily concerned about getting the state and federal resources needed to fix the crisis and move forward. Governor Snyder has asked the legislature for $27 million in aid, in addition to an earlier request for $60 million, but it’s imperative that state lawmakers take the necessary steps so that the money actually reaches Flint.

She reminded us that it has been five months since the city’s water service was returned to Detroit, but residents still can’t drink it or cook with it. Parents are coping with a tremendous amount of anxiety over what the lead-tainted water has done to their children’s future. Economic development and jobs have taken a hit as well.

Here are some of the steps the city plans to undertake:

  • Replace all lead and lead-tainted water pipes. The first 30 homes will be finished by the end of March. This project will cost $700 million or more.
  • Educational support for children, including pre-school, school nurses, hire additional special education teachers, and help teachers identify children with developmental problems
  • Blood tests, especially for children
  • Aggressive, long-term neuro-developmental screenings
  • Nutrition education to help families learn about foods that can reduce the effects of lead in the body
  • A jobs program for young people – delivering water, food, and nutrition information to residents
  • Fast Start Initiative – pairing job-seekers with tradesmen, such as plumbers and pipefitters

Mayor Weaver said she’s determined to put her city back on the road to recovery and make it a good place for people to live and work. But she underscored that all of Michigan is missing out when the state refuses to invest in cities.

“No other city should have to go through what Flint and its residents have had to endure,” said Weaver. “I’m sorry Flint is the example, but please learn from us, otherwise you’re failing your city. Flint can and will rise again!”

 

Municipal Finance Reform

Tony-Minghine-DSC_1546-300x200Next up, the League’s Anthony Minghine agreed with Mayor Weaver that Flint, in a lot of ways, is a symptom of what we’re dealing with. It’s time to take a different look at how we fund our communities. Cities are what drives the state and our current finance model doesn’t allow us to invest and have strong, vibrant communities. The state’s finance model is broken and has led to systematic disinvestment in local governments.

In fact, census data shows that Michigan is the only state that has invested less resources in its cities in 2012 than in 2002. Municipal revenue from state sources is down almost 57 percent during that same time period, even though state revenue rose 29 percent. And revenue sharing dollars have been cut $7.5 billion over that decade. To find out how much revenue has been diverted from your city, check out the League’s Revenue Sharing Data Lookup.

Minghine stressed that the reality is that we’ll never get back to where we were with this system. We need a new way forward. To that end, the League is launching a municipal finance reform campaign with a three-pronged approach, which is detailed in the March/April issue of The Review:

  1. Revenue Enhancement – Cities need more revenue, and the League will be presenting ideas.
  2. Structure of Government – We need to think differently about how to deliver services within our city boundaries.
  3. Cost Containment – We need to devise a new means to deal with legacy costs.

In support of the need to invest in our communities, the League has been involved in developing a number of resources:

“We have to create great places,” said Minghine. “If we invest in local government, we can create the kinds of places we all want to live and work.”