Poleski Proposes Revenue Sharing Overhaul

State Representative Earl Poleski (R-Jackson) proposed a new formula for disbursing revenue sharing dollars that would increase the number of communities receiving aid under the Economic Vitality Incentive Program (EVIP). While the formula more than doubles the number of communities that will receive funding, it provides for smaller increases than Governor Snyder has proposed for those currently in the system. Representative Poleski’s proposal includes the same total amount of funding as Governor Snyder’s proposal while allocating funds differently.

EVIP currently provides revenue sharing dollars to 486 cities. Under Representative Poleski’s proposal, current members would receive a 1 percent increase. 1,105 additional cities, villages, and townships would receive per capita payments of $7.14609, as long as they receive at least $5,000, raising the total number of local government entities receiving revenue sharing payments to 1,492. The current threshold is $3,000, and if the proposal is approved the new minimum of $5,000 will cut off 17 local governments from revenue sharing.

In order for local governments to receive their share of EVIP funds they must satisfy state requirements on financial transparency, service sharing, and retirement benefits. Governor Snyder proposed an alternative plan where local governments could instead meet a number of thresholds for financial health. He also proposed a new pot of funds, a total increase of 15%, that local governments could receive funding from if they meet the necessary financial health thresholds or fall below a series of thresholds on finances and crime indicating trouble. The Governor’s proposal would not provide any aid to local governments that aren’t currently receiving EVIP funding.

The proposal would also change the eligibility requirements for communities receiving more than $50,000. The transparency requirement would stay intact, but the service sharing aspect would be replaced by a requirement that the community commits 5 percent of one-third of its revenue sharing resources to road maintenance, and another 5 percent of one-third of shared revenue towards unfunded accrued liabilities.

posted by PAA Online , Friday, March 21, 2014 11:29 AM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters