Monday, August 22, 2016

Taxes Up $4.3 Million, State Money Down $200K: So Who 'Compromised' Services?

Taxes Up $4.3 Million, State Money Down $200K: So Who 'Compromised' Services? [Michigan Capitol Confidential]:
"Revenue sharing payments from the state of Michigan to the city of Jackson were $219,300 lower in 2015 than in 2010.
But Jackson’s overall annual tax revenues grew by $4.3 million over the same period, including $2.3 million more from its city income tax.
The decline of $220,000 in state revenue sharing funds, though, was the subject of a recent public meeting in Jackson hosted by a statewide local government lobbying organization called the Michigan Municipal League.
The MML is trying to make an issue out of state revenue sharing payments as part of a pitch for municipalities to get more.
The MLive news site published an article on the meeting it called, “State revenue sharing system is ‘broken,’ city leaders say.”
The story did not mention that Jackson’s overall revenue has increased faster than the rate of inflation from 2010 to 2015.
The city’s total revenues grew from $35.4 million in 2010 to $39.7 million in 2015, which is a 3 percent increase when adjusted for inflation.
(The 2010 budget would be equivalent to $38.5 million in 2015 dollars, or $1.2 million less than what Jackson actually did take in last year).
The city has seen increases in overall tax revenues despite having a high proportion of low-income residents.
Jackson’s median household income was $27,342 from 2010 to 2014 (the statewide average is around $48,000) and its poverty rate is 36.7 percent..."

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