Michigan Governor Calls for State Revenue Sharing Reform

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) March 24, 2011 -- On Monday March 21st, Governor Rick Snyder spoke in Grand Rapids regarding “Community Development and Local Government Reforms”. The focus of Governor Snyder’s speech was centered on the changes that are proposed to statutory revenue sharing. The proposed changes to statutory revenue sharing will now include a list of requirements that all local governments are required achieve. If local governments want to keep the statutory revenue sharing money they have relied on for the past 40 years they must now prove to the state they are meeting the goals of financial reform.

The intent of Governor Snyder is to motivate local governments to become financially sound organizations by rewarding them for their success, not to punish them. There are three incentive areas that are required to meet set standards in order to receive revenue sharing money; they include consolidation, accountability, and compensation.

The consolidation incentive can be made by demonstrating how representatives are working with other governments to reduce costs. Snyder said past achievements would count towards the incentive.

To meet the accountability goal, communities would be required to post their financial data and performance on an online “dashboard” by Oct. 1.

The compensation incentive would require communities to replace defined benefit pensions with 401(k)-style retirement savings programs and require a 20 percent employee match for health care.

It is important for local governments to know that for Governor Snyder to make this reform happen there will be many changes made to state law. It is also important to note that the revenue sharing dollars will only be available to communities currently receiving $6,000 or more in statutory revenue sharing. If a community is currently receiving less than the $6,000 amount they will not be eligible for incentive dollars.

To see two government subsidy programs that many municipalities in Michigan are using to off set expenses employee health care please visit RDSservices.us.

community development     Local Michigan Government     Michigan Government     Michigan governor     Rick Snyder     state government reform     state of michigan     state revenue sharing