I would like to take a few moments to explain a vital revenue the village receives in it general fund, that being State Revenue Sharing. Did you know;
Elk Rapids uses state funding, called revenue sharing, to pay for many quality of life services that make our community the type of place where people want to live and business want to locate.
Revenue Sharing was promised to local communities in the Michigan Constitution to help pay for core government services such as police protection, fire services, roads, water, sewer and garbage collection services.
It started when the State of Michigan promised communities it would streamline tax collection by eliminating local taxes and replacing them with state taxes. The State collects and records these taxes and is suppose to reimburse local jurisdictions to off set the general budgets of local communities.
In every budget since 2000, the State has not fully returned revenue sharing as required by state statute. Six consecutive years of cuts has left local communities short $2 billion short on revenue sharing.
The legislature needs to recognize the connection between the essential services provided by local communities and the economic vitality of our state.
Local communities are the foundation of successful economic development in Michigan. Safe streets and functioning infrastructure are critical to attracting and maintaining businesses.
Communities have reduced their services, eliminated public safety positions and consolidated services to deal with lost revenue.
According to the Michigan Commission on Law Enforcement Standards, there are nearly 16-hundred fewer police officers on the streets of Michigan since 2001.
The state’s Fire Marshall Office reports 400 fewer fire fighters since 2003.
Senior, recreation and public library programs have been drastically cut or eliminated.
Local governments cannot continue to provide essential services if funding is continually redistributed or other budget priorities.
Had revenue sharing kept up with inflation I estimate Elk Rapids would receive an additional $94,000 in the general fund budget next year. The amount equates to almost 1 mill. Please let your representative and senator know how important it is for them to preserve and increase State revenue sharing.
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