The city of Southfield will join other municipalities and counties from across the state in the Michigan Municipal League (MML) State Shared Revenue Rally on Thursday, October 22 on the capitol steps in Lansing. The rally is planned to protest the Legislature’s proposed 19 percent cut in statutory revenue sharing and the 11 percent total cut in (statutory and constitutional) revenue sharing.
Like all Michigan counties and municipalities, the City’s financial position has been hampered in recent years by a steady decline in state shared revenues, the second largest single revenue component next to property taxes. These continued cuts to state shared revenues and decreasing tax revenues severely impact the City’s continued ability to provide the desired level of services and public safety.
“We must join together to oppose these serious cuts in state shared revenues,” said Southfield Mayor Brenda Lawrence. “Cuts of this magnitude will seriously hinder the City’s already strained financial state.”
City Treasurer Irv Lowenberg indicated that the total in state shared revenues is down $2,815,675, or 28.8 percent, since the beginning of the decade while the Municipal Cost Index has increased 28.6 percent (from 160.6 to 206.5) during that same period. As a result, the purchasing power of the City’s total state shared revenues has decreased by over 57 percent since the beginning of the decade. Statutory revenues have decreased by $2,932,943, or 62.7 percent, since the beginning of the decade, and the purchasing power of that portion has decreased over 91 percent since the beginning of the decade.
“With every aspect of the economy hurting, these cuts would be devastating for all cities,” commented Southfield Council President Donald Fracassi.