LANSING – Nearly half of Michigan’s local governments say they are either “somewhat” or “significantly” having trouble keeping their fiscal condition in order, according to the results of a survey conducted by the University of Michigan’s Ford School of Public Policy. But that is actually an improvement compared to earlier surveys.
In a similar survey conducted in 2010, 61 percent of those who responded said their governments were having difficulties managing their budgets. In 2009, the total was 52 percent.
And while the number reporting trouble is an improvement, tax changes that have been enacted and that will likely be proposed could make managing their fiscal situation that much more difficult. Especially worrisome to local governments will be a proposal expected soon from Governor Rick Snyder to phase out Michigan’s personal property tax that generates nearly $1 billion in local revenue.
Thomas Ivacko, who administers the Center for Local, State and Urban Policy that conducted the survey, said for those governments having trouble now there was likely a lot of stress about the future.
In fact, 50 percent of those polled expressed concern about the future. Even that is an improvement over 2010 when 65 percent expressed worry about the future and 2009 when 62 percent did so.
The survey was conducted from April 18 to June 10 of this year, both online and using hardcopies. A total of 1,272 communities responded to the survey, roughly 69 percent of those polled, meaning the survey has an error rate of 1.5 percent.
Of those polled, according to the school, 74 percent said their revenues continued to decline because of losses in property taxes.
Another 61 percent said they had seen cuts in state aid.
And 56 percent said they were seeing an increasing number of home foreclosures in their area and 47 percent said tax delinquencies were a growing problem.
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