The House of Representatives yesterday passed legislation that will likely prevent drastic revenue sharing cuts.

The Granholm Administration has proposed a comprehensive budget solution that will close the budget hole for the current 2009-2010 budget, and will eliminate the deficit expected for the 2010-1011 budget.  These budget recommendations were sent to the Legislature. Indications were made to League staff that if these recommendations were not approved, the Governor would be forced to do an executive order that would include eliminating the August revenue sharing payment (approximately $120 million to communities).

The House of Representatives yesterday took the first step in passing the Governor’s budget, approving HB 6086 on a 57-47 Vote. The Senate is adjourned until September 7th, but indications are that the Senate Republicans will also pass this appropriations bill and send it on to the Governor for her signature.

Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.

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