June 10, 2014 at 1:00 am

State panel approves 3% hike in revenue sharing with municipalities

Lansing— Michigan counties, cities and townships will see their state revenue sharing increase nearly 3 percent next year under an agreement a House-Senate conference committee approved Monday.

More of the state’s budget picture emerged as lawmakers on the committee approved a total revenue sharing budget of nearly $1.3 billion as part of next year’s allotment for general government. Both legislative chambers now must adopt the committee agreement to make it part of the 2015 fiscal year budget that starts Oct. 1.

“State revenues are up and, therefore, all constitutional revenue sharing is a bit more — 2.5 to 3 percent more,” said Rep. Earl Poleski, R-Jackson, who heads the House Appropriations Subcommittee on General Government. “That’s the good story about revenue sharing.”

That includes $758.3 million in constitutionally mandated revenue sharing and a little more than $600 million in statutory revenue sharing that lawmakers and the governor control from year to year. The constitutional portion of the formula goes up a little more than 2.4 percent; the statutory portion increases between 6 and 7 percent.

Both, however, are below Gov. Rick Snyder’s projections in the state budget proposal he unveiled in February based on official state revenue projections issued the prior month. Snyder had hoped for a 15 percent hike in statutory revenue-sharing.

The second set of revenue estimates, in May, adjusted that state’s expected income downward by about $300 million. It led to some adjustments when the governor and lawmakers set their final 2015 budget targets this month.

Nevertheless, counties and cities will see revenue sharing increases, For example, constitutional revenue sharing will go up $3.3 million for Macomb County, $24.4 million for Oakland County and $10 million for Wayne County, according to the Senate Fiscal Agency.

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