Cities See Declining Revenue Sharing From State

A new report reveals communities throughout Michigan are paying the price for decades of state revenue sharing cuts. Local revenue sharing payments are state taxes distributed to local governments, and according to the findings these payments decreased more than 35% for cities, villages, and townships between 1997 and 2019. Report author Brandon Betz with the Michigan League for Public Policy notes counties saw one fourth less during the same time period.

Cities, counties and local governments, they need this money very, very badly because they’re on the front lines of providing goods and services to local residents.”

Those services include fire response, sewers, road maintenance, parks, public safety and more. Betz says at the same time, local governments are not taking in as much in property tax collections. In 2019, real Michigan property-tax collections were on par with collections in 2004.