Merge local governments to save money

The Detroit News is highlighting ideas from various groups to promote discussion on reform, restructuring government and the economy.

Merge local governments to save money

Idea 9: Merge local governments so they can get better control over their labor costs and combine services with their neighbors.

Why: Michigan has more than 1,800 units of local government. Consolidating some could result in money-saving staffing efficiencies and economies of scale in such things as purchasing. There has been only one such consolidation in Michigan in recent years -- three small towns that formed the new city of Iron River in the 1990s.

Local governments across the state have found hundreds of money-saving ways to work together. Grand Rapids and surrounding cities have joined forces on 109 services, including such things as community service work crews, police cadet training, emergency dispatch, waste disposal, transit, recreation and public works equipment sharing. In Metro Detroit, the Southeast Michigan Council of Governments lists 250 such collaboration examples.

Benefit: Combining efforts has saved money for communities. In Iron River, the consolidation led to local government savings of 10 percent. A proposed but rejected consolidation of Farmington-Farmington Hills was projected to save about $3.7 million per year. Greater consolidation of fire and emergency response services could save an estimated 15 percent (or $100 million) per year statewide, according to a Michigan State University report.

How: Abolish Michigan Public Act 312 and the Urban Cooperation Act.

Obstacles: Local governments and their staffs fear the loss of jobs, the loss of local control and the possible erosion of traditional town identities.

Source: Center for Michigan