As part of his proposed budget to be announced later this morning, Gov. Rick Snyder will seek a 33 percent cut in local revenue sharing, much of which goes to support local police and fire protection.
The Detroit News reports:
Gov. Rick Snyder will announce a 33 percent cut in a pot of money that gets shared among Michigan municipalities when he unveils his 2012 budget Thursday, a top official said today.
The pain for cities is the latest detail to emerge in advance of the budget, in which Snyder wants to cut a $1.4 billion deficit while at the same time financing a $1.5 billion business tax credit.
Under “statutory” revenue sharing, the state will distribute $200 million to cities, villages and townships and $100 million to counties, said Bill Rustem, Snyder’s director of strategy.
That’s down from $292 million for cities, villages and townships and $150 million for counties under the present setup, he said.
Municipalities already saw deep cuts to revenue sharing in the FY 2010 budget, causing the layoff of hundreds of police officers and firefighters in communities around the state. Local governments have faced their own fiscal crisis as a result of the foreclosure boom, which dramatically lowers property tax revenues.