Michigan cities contend state cutbacks cost $6.2 billion in lost revenue
The 1998 gentleman’s agreement that cost Detroit millions surfaced again today. A number of municipal leaders contend the state cost communities $6.2 billion in sales tax revenue that didn’t go to them over the last decade, The Detroit News reports.
The Michigan Municipal League, as well as other municipal officials, urged state lawmakers at a press conference today to permanently boost statutory revenue sharing, The News says.
Taking the League at its word, the numbers for Detroit are staggering: Detroit, the group says, would’ve received more than $730 million in the past decade had revenue sharing levels prior to 2003 been maintained.
Officials also took a shot at Gov. Rick Snyder’s new program to disperse proposed revenue sharing increases. From The News:
Cities have to submit paperwork showing they’re meeting state mandates in areas such as consolidating services and employee pay.
Auburn Hills City Manager Pete Auger said it smacks of the same kind of central-government control for which Lansing lawmakers criticize the federal government.