In his state of the city speech last night Detroit Mayor Dave Bing said that Gov. Rick Snyder’s proposed cuts to state revenue sharing could be devastating for Detroit.
The Detroit News reports:
While promising regional cooperation, Bing questioned cuts proposed by Gov. Rick Snyder, who attended the speech at the Max M. Fisher Music Center. Snyder’s budget includes proposals that could jeopardize the $176 million in revenue sharing for Detroit, which has a $150 million budget shortfall and millions in bond debt.
“Gov. Snyder is challenging cities to make reforms in order to receive funding from the state of Michigan,” Bing said. “While I respect that approach and am confident in the steps we are taking, the budget presented has potentially devastating consequences for Detroit.
“No city would be harder hit than us. It threatens the concrete but fragile gains we have made.”
Snyder’s proposed budget calls for a one third reduction in tax funded payments to local communities. The plan also calls for a new system of sharing the money. Instead of distributing the money based on population, communities will be awarded funds based on their willingness to share services and make other reforms favored by the governor.