Issue Advisory

Governor Signs FY 2009-10 General Government Budget, Promises to Continue Fighting for Revenue Sharing

Governor Granholm Friday signed the FY 2009-10 general government budget, which includes funding for revenue sharing. In her accompanying letter, Granholm remained concerned about the cuts to local governments and the lack of revenue sharing funding provided by the budget. She again called on the Legislature to supply additional dollars and assure appropriate revenue sharing payments in support of critical local services.

The budget contains an overall 11.1-percent decrease to revenue sharing from FY 2008-09 (the reduction is to the combined total of constitutional and statutory revenue sharing payments to each community). When looking at only statutory revenue sharing (the dollars the Legislature can control), the FY 2009-10 budget averages to a 19-percent decrease to communities.

While the League vigorously opposed the severe cut, we did not ask the governor for a veto because of the very real possibility the Legislature would not replace any of the statutory dollars to local units of government.

We will continue to urge the Legislature to pass a supplemental budget bill to replace the drastic cuts in revenue sharing to local government units.

The total budget for revenue sharing to cities, villages and townships in the general government budget is $936.3 million. $622.15 million of that total is constitutional revenue sharing, and $314.15 million is statutory revenue sharing.

Contact
Summer Minnick