Revenue Sharing Benchmarks Changed by Senate Panel

The Senate Appropriations General Government Subcommittee moved a budget this week that made significant changes to the “carrot and stick” approach originally proposed by the Snyder Administration.

Senate Bill 954 originally contained language requiring local units of government to complete two tasks in order to obtain the final third of available revenue-sharing funding: 1) take serious steps in reducing the cost of their pension plans and 2) ensure compliance with PA 152 of 2011, (the statute providing for a ceiling on how much a local unit can pay for employees’ health care). The version moved to the full Appropriations Committee this week provides for the final third in funding if the local unit meets either of the aforementioned conditions.

Local units reported to Legislators that they would need to break their own pension regulations in order to comply with provisions of the proposal.

In other action on the General Government Budget, the panel’s Democrats proposed four major amendments during the hearing, all of which failed on party lines, including an attempt to secure $220 million in state dollars for the City of Detroit, a number many Detroit legislators argue is owed the City from an arrangement brokered by Governor John Engler.

posted by PAA Online , Friday, April 20, 2012 10:25 AM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters