ADOPTED - AUGUST 24, 2004
Agenda Item No. 26
Introduced by the Finance Committee of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION SUPPORTING THE PROPOSAL TO COLLECT COUNTY GENERAL FUND TAXES IN JULY AND TO CONTINUE REVENUE SHARING FOR COUNTIES, CITIES AND TOWNSHIPS AT CURRENT LEVELS
RESOLUTION #04-252
WHEREAS, the State of Michigan is facing a $1.6 billion deficit in preparation of its 2004-05 budget; and
WHEREAS, one of the Governor’s proposals to eliminate this deficit was the total elimination of revenue sharing payments to counties in the amount of $183.5 million, with the replacement of these funds offset from funds withdrawn from a restricted account in each county which is funded from the proceeds obtained by advancing county general fund property tax collections from December to July; and
WHEREAS, through negotiations with the Michigan Association of Counties, the proposal has been modified to phase in the advancement of the property tax collection over a three year period, thus lessening the impact on taxpayers, and to provide assurances that once the restricted fund is exhausted that the state will resume its revenue sharing payments; and
WHEREAS, should the state budget be adopted with the elimination of $183.5 million in revenue sharing payments, without a source of replacement revenue, reductions in services to the residents of Ingham County totaling as much as $5.2 million will be necessary; and
WHEREAS, depending on how the formula is written to make such a reduction, Ingham County and its cities, townships, and villages could receive a 17% reduction in revenue sharing payments, or Ingham County could receive a 46% reduction with the remainder spread among its cities, townships and villages; and
WHEREAS, elimination of $183.5 million in revenue sharing payments statewide, or $5.2 million throughout Ingham County, regardless of the method used to distribute the reduction, would result in significant reductions in public safety, public health, recreation, and other services; and
WHEREAS, the Governor’s proposal would achieve the desired result of reducing the state’s deficit by $183.5 million while enabling the continuation of funding for current levels of public safety, public health, recreation, and other services without significant reduction; and
WHEREAS, Ingham County would be assured of a revenue stream replacing the current level of revenue sharing payments adjusted for inflation the next 7 years, with legislation requiring the state to resume state revenue sharing after that time; and
WHEREAS, in comparison to the reductions necessary to be made if the Governor’s revised proposal is rejected, the impact on taxpayers has been minimized by phasing in the advancement of the tax payment date over a three year period; and
WHEREAS, the Michigan Association of Counties has supported the Governor’s revised proposal and encouraged its members to also support the proposal.
ADOPTED - AUGUST 24, 2004
Agenda Item No. 26
RESOLUTION #04-252
THEREFORE BE IT RESOLVED, that the Ingham County Board of Commissioners supports the Governor’s revised proposal to collect county general fund property tax in July and to continue revenue sharing for counties, cities and townships at current levels as endorsed by the Michigan Association of Counties.
BE IT FURTHER RESOLVED, that the Ingham County Board of Commissioners urges the legislature to incorporate the Governor’s revised proposal into the budget, including the necessary statutory language in the revenue sharing statute reflecting the continuing commitment of the state to provide revenue sharing to counties.
BE IT FURTHER RESOLVED, that the Clerk shall send copies of this resolution to the Senators and Representatives representing Ingham County; Governor Granholm, and the Michigan Association of Counties.
FINANCE: Yeas: Lynch, Grebner, Dedden, De Leon, Thomas
Nays: None Absent: Minter Approved 8/18/04