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CRC Column

The right to criticize government is also an obligation to know what you are talking about. 
-Lent Upson, 1st Executive Director of CRC  


Government Budgeting Issues

Public Finance/Taxation

Report 313-10, pdf File Michigan Constitutional Issues ... Finance And Taxation Examines provisions of Article 9 that a constitution convention might consider: state and local property taxes; a graduated income tax; local sales taxes; and the effectiveness of the 1978 (Headlee) tax limitation amendment ( October 94 ) 4 pages

CC 992, pdf File State and Local Government Expenditures and Revenues in the 15 Most Populous States Compared Michigan to other major states on major revenue sources and major expenditure categories. ( November 90 ) 6 pages

Public Finance & Taxation - general literature

State Budget & Administration

Michigan Spending Programs

CC 875, Michigan's 1974-75 Spending Program ( August 74 ) 4 pages

CC 870, Michigan's 1973-74 Spending Program ( October 73 ) 8 pages

CC 856, Michigan's 1972-73 Spending Program ( September 72 ) 8 pages

The Budget Process

The State of Michigan Budget Process,
Presentation 99-01

Presentation to the Freshman class of Representatives on January 20, 1999.

Report 320, A Guide to the State Budget Process in Michigan, This report is designed to be a reference document to the state budget process, budgeting concepts, key actors in the budget process and their responsibilities in preparing the Michigan budget. ( February 97 ) 51 pages

State Budget Issues

Michigan's Weakened Financial Position and The Problem of Dual Deficits
State Budget Note 2009-01 ( January 2009 ) 8 pages

The much-anticipated Consensus Revenue Estimating Conference forecast to be released on Friday will shed light on the Fiscal Year 2009 and 2010 budget outlooks for the State of Michigan, but the basic financial condition of the State is known and shows a weakened cash position in the face of Michigan's ongoing structural deficit. This is the principal conclusion of a new analysis of the State budget by the Citizens Research Council of Michigan.

The report, Michigan's Weakened Financial Position and the Problem of Dual Deficits, notes that Michigan is ill-prepared to deal with the current cyclical problems associated with the national economic recession because it has failed to deal with the underlying structural deficits that have existed since FY2000. At the end of FY2000 the State had amassed over $3.9 billion in major fund cash reserves to deal with the 2001 recession. Today it faces a cash deficit of approximately $400 million that it must finance by means of both internal and external borrowing.

Michigan's Fiscal Future
Memorandum 1086 ( May 2008 ) 8 pages

Summarizes Report 349

Michigan's Fiscal Future
Report 349 ( May 2008 ) 152 pages

The Citizens Research Council of Michigan projects that Michigan's budget challenge will continue to grow through Fiscal Year 2017 (FY17) because virtually every area of the State budget faces spending pressure increases that outpace projected revenue growth. This "structural deficit" will persist even as the economy improves.

Provisions in the Michigan Constitution require the Governor and Legislature to take annual actions to keep current spending in line with current revenues. The CRC projections in Michigan's Fiscal Future quantify that absent those requirements and without substantial policy changes, structural deficits in Michigan's General Fund, K-12 education finances, and highway finances -- by FY17 - would grow to:

  • $6.0 billion in the state General Fund
  • $3.6 billion in K-12 education finances
  • $417 million in the state highway program

Using a well-established regional economic forecasting model, CRC and the W.E. Upjohn Institute collaborated on an analysis of Michigan's future state budget challenges from FY09 through FY17. The analysis is based on a series of assumptions about the performance of Michigan's economy between 2007 and 2017. This new analysis covers budgets supported by three major state funds: General Fund (GF), School Aid Fund (SAF), and the Michigan Transportation Fund. Major changes in the State's tax structure made in 2007 that will affect future State revenues have been factored into this analysis as have two series of tax cuts required by state law for FY09 and beyond.

A Recap of the FY04 Budget and Look Ahead to FY05 and Beyond,
State Budget Note 03-10 ( October 2003 ) 10 pages

The forecast of lower-than-anticipated General Fund and School Aid fund revenues for the State of Michigan fiscal year that began on October 1 portends increased fiscal pressure on the budget for fiscal year 2004-05, which will be submitted by the Governor in February. The report points to growth in Medicaid and corrections as the basic problems in the General Fund. Growth in these programs has begun to crowd out other state programs, such as higher education and revenue sharing. School aid, which has been protected to a higher degree than other programs, will be under great pressure in FY05, largely because school districts will be faced with an increase of at least 10 percent in their contributions to the Public School Employees Retirement System and increased health care insurance costs.

PDF File The Problematic Fiscal Year 2003-04 State Budget, Memo 1073 ( April 2003 ) 10 pages

Debate on the FY2004 State Budget is beginning to heat up and it is clear that agreement will not come easily. CRC has just released its first analysis of the FY2004 budget.

The Prospects for a Long-Term Solution to Michigan's General Fund Structural Deficit,
State Budget Notes 2002-04 ( April 2002 ) 6 pages

This analysis seeks to determine how soon, or indeed if ever, growth from currently authorized revenues will permit eliminating the structural defict without very large cuts i program spending.

The FY2003 Executive Budget: Short-Term Balance, Long-Term Gaps,
State Budget Notes 2002-02 (February 2002 ) 2 pages

Analyses how the Governor's proposed FY2003 Executive Budget addresses the imbalance between spending and revenues.

The Problem Facing the New Budget,
State Budget Notes 2001-01 (January 2002 ) 3 pages

CRC continues to track the deteriorating budget condition and offer analysis.

Michigan's Budget Problems -- Time for Permenant Solutions?,
State Budget Notes 2001-01 (December 2001 ) 3 pages

CRC continues to track the deteriorating budget condition and offer analysis.

pdf File Michigan's Budget Situation - A Long-Term Problem
Note 2001-05 (September 2001 ) 4 pages

In June, Note 2001-02 outlined the difficulties confronting the State in dealing with the budget. Since that time, actions were taken by the Governor and State Legislature to close the budget gaps for fiscal years 2000-01 and 2001-02. This Note summarizes the Fiscal Year 2000-01 and 2001-02 actions and provides some finding relative to the fiscal year 2002-03 budget outlook.

pdf File Michigan's Precarious Budget Situation,
Note 2001-02 ( June 2001 )

Even with economic recovery, the State will face problems as far out as FY2003.

Report 313-10, pdf File Michigan Constitutional Issues ... Finance And Taxation Examines provisions of Article 9 that a constitution convention might consider: state and local property taxes; a graduated income tax; local sales taxes; and the effectiveness of the 1978 (Headlee) tax limitation amendment ( October 94 ) 4 pages

CC 1025, pdf File State Budget Outlook, Analysis of the well being of the key funds and long-term reasons for concern ( May 94 ) 4 pages [14,387 bytes]

CC 945, Michigan's Financial Improvement Strategy (eliminating cash deficit) ( November 83 ) 4 pages

CC 941, The State Fiscal Plan: 1. Tax Increases establish financial base; 2. Increases in key fund spending --- See also Misc. Report --- ( June 83 ) 7 pages

CC 939, Resolving Michigan's Past, Present, and Future Fiscal Problems -- The 1983 Debate ( March 83 ) 2 pages

CC 933, Michigan's Key Fund Fiscal Problem ( September 82 ) 8 pages

CC 922, State Ballot Issues: Proposal A -- State Subsidy of Local Taxes (defeated 28% for to 72% against) ( May 81 ) 8 pages

CC 914, Fiscal Management in an Age of Limits: Balancing the State Budget ( July 80 ) 4 pages

CC 907, State Spending for 1978-79: General Fund-General Purpose ( January 79 ) 8 pages

CC 867, Preliminary Action on State Budget -- Tax Relief in Jeopardy ( July 73 ) 2 pages

CC 866, The New (state) Tax Relief Program in Brief ( June 73 ) 4 pages

Local Government Budget & Administration

Budget Systems & Procedures

Report 259, pdf File A Suggested Budget Measure for Local Units of Government in Michigan The purpose of this document is to present a sample budget ordinance, resolution, or charter provision that may be adopted by local units of government in Michigan. This measure, if adopted, will help to institutionalize budgeting procedures that will result in accountable allocation of local public resources and retention of fiscal stability. It should also enable local units to adopt provisions consistent with the new local budgeting provisions of the Uniform Budgeting and Accounting Act, P. A. 621 of 1973. ( November 79 ) 56 pages

Report 251, pdf File Proposed Local Government Uniform Budgeting System, Leading to enactment of the Uniform Budgeting and Accounting Act (P.A. 621 of 1978), this paper offered suggestions to bring a uniform budgeting and accounting system to Michigan local governments. ( April 77 ) 38 pages

Capital Budgeting -- Municipal Bonds

Memo, City Of Detroit Bond Refinancing Proposal: Chrysler/Jefferson Avenue Jeep Assembly Plant Issues relative to the refinancing of $118.56 million of general obligation bonds as limited tax bonds to be voted on September 14, 1993 ( August 93 ) 2 pages

CC 1008, pdf File Ballot Issues: City of Detroit Bond Proposals -- August 4, 1992, Proposal A - Neighborhood Redevelopment and Economic Development Programs; Proposal B - Public Lighting Service and Extension Bonding Proposal; Proposal C - Recreation and Zoo Facilities Bonding ( July 92 ) 4 pages [34,746 bytes]

Revenue Estimating

Tax Court & Appeals from Taxation

State Finance

CC 997, Income, Spending, and Taxation -- Michigan Compared to the U.S. Average ( April 91 ) 4 pages

Misc., 1990-91 State General Fund-General Purpose Budget ( February 91 ) 4 pages

CC 992, State and Local Government Expenditures and Revenues in the 15 Most Populous States Compared Michigan to other major states on major revenue sources and major expenditure categories. ( November 90 ) 6 pages

CC 946, State and Local Government Expenditures/Revenues in the 21 Largest States ( December 83 ) 6 pages

CC 945, Michigan's Financial Improvement Strategy (eliminating cash deficit) ( November 83 ) 4 pages

CC 930, Effects on Michigan of the 1981 Economic Tax Recovery Act ( July 82 ) 6 pages

CC 928, State and Local Government Expenditures/Revenues in the 14 Largest States ( April 82 ) 4 pages

CC 924, Michigan's Growing Cash Deficit ( July 81 ) 6 pages

CC 921, State Finances in Distress: Michigan--Fiscal Years 1980 and 1981 ( November 80 ) 2 pages

CC 883, Michigan's Financial Problem ("Worst fiscal crunch in state history") ( November 75 ) 6 pages

Report 248, Recent Michigan Expenditure Trends ( March 75 ) 15 pages

Misc., Letter to Senator H. A. DeMaso re Revenue & Expenditure Analyses of General Fund Operations ( March 73 ) 6 pages

CC 946, State and Local Government Expenditures/Revenues in the 21 Largest States ( December 83 ) 6 pages

State Aids, Shared Taxes & State Revenue Sharing

pdf File Michigan’s Unrestricted Revenue Sharing Program: Retrospect and Prospect
Report 330, ( September 2000 ) 33 pages

In December 1998, the Michigan Legislature approved a major revision in the State's revenue sharing program. The unrestricted revenue sharing program in Fiscal Year (FY) 2000 will pay over $1.4 billion to general-purpose local units of government: cities, villages, townships, and counties. These units may use the revenues for any legitimate governmental purpose.

Although counties receive revenue sharing, most revenue sharing dollars are paid to cities, villages, and townships and it is these payments that have attracted the greatest legislative attention and interest and are the focus of this report. The report traces the development of Michigan's program over a six decade period, describes the formula components in place prior to the 1998 revisions, and provides illustrative projections of payments under the new formulas beyond the year 2000.

pdf File Michigan’s Unrestricted Revenue Sharing Program: Retrospect and Prospect
Memo 1054, ( September 2000 ) 4 pages

Summary of Report 330

pdf File The 2000 Census and State and Local Finance in Michigan
Report 328, (March 2000 ) 32 pages

The study identifies 34 provisions in state law where a reference to local government population affects state and local government finance: 11 affect the allocation of state funds to local governments and 22 affect local governments’ authority to raise revenue. The potential changes of the most significance are the provisions in: (1) the State Revenue Sharing Act that eliminate limitations on growth for as many as 1,000 cities, villages, and townships whose population increases more than ten percent between censuses; (2) the Downtown Development Authority Act that could allow Detroit to raise its tax from one to two mills; and (3) the City Income Tax Act that could restrict Saginaw’s ability to levy its tax at a rate higher than that generally allowed other cities.

CC 1020, ../pdf File Unrestricted State Revenue Sharing In Michigan, Describes the system, the component taxes (sales, income, single business, and intangibles), the history of state actions, and examines the effect on local government revenues ( October 93 ) 6 pages [43,973 bytes]

Report 291, pdf File Effects of Population on Major Revenue Sources in Detroit, Explores the financial and representational consequences of Detroit losing population in the1990 census ( April 89 ) 19 pages

Overview of the Effects of Federal Decennial Census on Detroit's Major State Source Revenues,
CC 981, ( March 89 ) 2 pages [36KB]

Analyzes how populations interact with state revenue sharing, transportation funding, and apportionment to affect the city of Detroit. --- Summarizes Report #291 ---

State Supervision of Local Government Finance

Memo, pdf FILE An Analysis of the Effectiveness of the Local Government Fiscal Responsibility Act (Public Act 72 of 1990, formerly Public Act 101 of 1988), The Michigan Commission on Intergovernmental Relations, in response to a legislative request to evaluate Public Act No. 101 of 1988, the Local Government Fiscal Responsibility Act, asked CRC to analyze the effectiveness of the act. Criticisms of the act focused on several areas: the susceptibility of the process to political influence; the length of time required for the appointment of an emergency financial manager; the extent of the authority of the emergency financial manager; and the bankruptcy provision. ( August 90 ) 16 pages [54KB]

State Tax Limitation (Headlee Amendment)

CC 1039, pdf File “Headlee Rollbacks” and the Constitutionality of Public Act 415 of 1994, Examined the interaction between assessed value, which is the basis of Headlee millage rollbacks, and the taxable value cap as implemented by the Legislature. ( January 96 ) 4 pages [24,950 bytes]

Misc., Local Government Tax & Expenditure Limitations ( June 81 ) --- pages

CC 949, Proposal C -- Voter's Choice (Initiatory Petition re Article IX, Sections 1 & 2) --- See also CC #947 and Misc. Report --- ( October 84 ) 4 pages

CC 947, The Voter's Choice Proposal (Initiative Petition re Article IX, Sections 1 & 2) --- See also CC #949 and Misc. Report --- ( May 84 ) 4 pages

Misc., Discussion Draft of Analysis of the Voter’s Choice Initiative Petition to Amend the Constitution ( June 83 ) 8 pages

Misc., Summary Analysis of the Voter's Choice Proposal ( February 84 ) 24 pages

CC 927, The Michigan Tax Limitation Amendment -- State Revenue and Spending Limits --- See also CC #947 and #949, and Misc. Report --- ( November 81 ) 4 pages

Misc., The Michigan Tax Limitation Amendment -- Current Status & Issues I. The State Revenue and Spending Limits ( June 81 ) 18 pages

State Financial Problems

The Prospects for a Long-Term Solution to Michigan's General Fund Structural Deficit,
State Budget Notes 2002-04 ( April 2002 ) 6 pages

This analysis seeks to determine how soon, or indeed if ever, growth from currently authorized revenues will permit eliminating the structural defict without very large cuts i program spending.

The FY2003 Executive Budget: Short-Term Balance, Long-Term Gaps,
State Budget Notes 2002-02 (February 2002 ) 2 pages

Analyses how the Governor's proposed FY2003 Executive Budget addresses the imbalance between spending and revenues.

The Problem Facing the New Budget,
State Budget Notes 2001-01 (January 2002 ) 3 pages

CRC continues to track the deteriorating budget condition and offer analysis.

Michigan's Budget Problems -- Time for Permenant Solutions?,
State Budget Notes 2001-01 (December 2001 ) 3 pages

CRC continues to track the deteriorating budget condition and offer analysis.

pdf File Michigan's Budget Situation - A Long-Term Problem
Note 2001-05 (September 2001 ) 4 pages

In June, Note 2001-02 outlined the difficulties confronting the State in dealing with the budget. Since that time, actions were taken by the Governor and State Legislature to close the budget gaps for fiscal years 2000-01 and 2001-02. This Note summarizes the Fiscal Year 2000-01 and 2001-02 actions and provides some finding relative to the fiscal year 2002-03 budget outlook.

pdf File Michigan's Precarious Budget Situation,
Note 2001-02 ( June 2001 )

Even with economic recovery, the State will face problems as far out as FY2003.

CC 1020, pdf File Unrestricted State Revenue Sharing In Michigan, Describes the system, the component taxes (sales, income, single business, and intangibles), the history of state actions, and examines the effect on local government revenues ( October 93 ) 6 pages [43,973 bytes]

CC 1038, pdf File The Earmarking of State Taxes in Michigan, Describes the past and present status of dedicated state taxes and Michigan ( December 95 ) 8 pages [35,853 bytes]

CC 1025, pdf File State Budget Outlook, Analysis of the well being of the key funds and long-term reasons for concern ( May 94 ) 4 pages [14,387 bytes]

CC 1016, pdf File State Financial Problems, Discusses the condition of the state's finances which was very similar to the condition in the early 1980s. ( February 93 ) 4 pages [36,544 bytes]

CC 933, Michigan's Key Fund Fiscal Problem ( September 82 ) 8 pages

CC 924, Michigan's Growing Cash Deficit ( July 81 ) 6 pages

CC 883, Michigan's Financial Problem ("Worst fiscal crunch in state history") ( November 75 ) 6 pages

Local Government Finance

pdf File The 2000 Census and State and Local Finance in Michigan
Report 328, (March 2000 ) 32 pages

The study identifies 34 provisions in state law where a reference to local government population affects state and local government finance: 11 affect the allocation of state funds to local governments and 22 affect local governments’ authority to raise revenue. The potential changes of the most significance are the provisions in: (1) the State Revenue Sharing Act that eliminate limitations on growth for as many as 1,000 cities, villages, and townships whose population increases more than ten percent between censuses; (2) the Downtown Development Authority Act that could allow Detroit to raise its tax from one to two mills; and (3) the City Income Tax Act that could restrict Saginaw’s ability to levy its tax at a rate higher than that generally allowed other cities.

Memo, pdf FILE An Analysis of the Effectiveness of the Local Government Fiscal Responsibility Act (Public Act 72 of 1990, formerly Public Act 101 of 1988), The Michigan Commission on Intergovernmental Relations, in response to a legislative request to evaluate Public Act No. 101 of 1988, the Local Government Fiscal Responsibility Act, asked CRC to analyze the effectiveness of the act. Criticisms of the act focused on several areas: the susceptibility of the process to political influence; the length of time required for the appointment of an emergency financial manager; the extent of the authority of the emergency financial manager; and the bankruptcy provision. ( August 90 ) 16 pages [54KB]

CC 978, Insuring Fiscal Responsibility in Local Units of Government ( December 88 ) 8 pages

Misc., State Limitations on Local Taxes and Spending (Letter of '9/29 (with memo)) ( September 81 ) 5 pages

Misc., Local Government Tax & Expenditure Limitations ( June 81 ) --- pages

Financial Emergencies

CC 978, pdf File Insuring Fiscal Responsibility in Local Units of Government ( December 88 ) 8 pages

Memo, pdf FILE An Analysis of the Effectiveness of the Local Government Fiscal Responsibility Act (Public Act 72 of 1990, formerly Public Act 101 of 1988), The Michigan Commission on Intergovernmental Relations, in response to a legislative request to evaluate Public Act No. 101 of 1988, the Local Government Fiscal Responsibility Act, asked CRC to analyze the effectiveness of the act. Criticisms of the act focused on several areas: the susceptibility of the process to political influence; the length of time required for the appointment of an emergency financial manager; the extent of the authority of the emergency financial manager; and the bankruptcy provision. ( August 90 ) 16 pages [54KB]

Memo, Letter to Ralph J. Wagner, Chairman of the Dearborn Budget Stabilization Task Force ( February 82 ) 13 pages

Detroit Finance (Detroit Income Tax)

pdf File Detroit: At a Fiscal Crossroads,
Memo 1041, ( May 96 ) 8 pages [52,668 bytes]

Reviews Detroit's finances by analyzing its 1996 budget. Discusses the relative strength of the City's fiscal position.

CC 1027, pdf File The Proposed 1994-95 City Of Detroit Budget, Analysis of the proposed revenues, expenditures, general fund deficit, the structural deficit and the changes needed to eliminate the problems ( May 94 ) 6 pages [17,017 bytes]

Report 310-11, pdf File The Detroit City Charter: Budget And Finance Issues, Examines the budget and finance operations under a strong mayor-council for of government in the City of Detroit ( October 93 ) 6 pages [37,113 bytes]

Memo, pdf File City Of Detroit Bond Refinancing Proposal: Chrysler/Jefferson Avenue Jeep Assembly Plant Issues relative to the refinancing of $118.56 million of general obligation bonds as limited tax bonds to be voted on September 14, 1993 ( August 93 ) 2 pages [7 KB]

Report 300, Fiscal Trends of the City of Detroit --- See also CC #999 --- ( June 91 ) 81 pages

CC 999, pdf File Fiscal Trends of the City of Detroit --- Summarizes Report #300 --- ( June 91 ) 6 pages [39,656 bytes]

Report 291, pdf File Effects of Population on Major Revenue Sources in Detroit, Explores the financial and representational consequences of Detroit losing population in the1990 census ( April 89 ) 19 pages

Overview of the Effects of Federal Decennial Census on Detroit's Major State Source Revenues,
CC 981, ( March 89 ) 2 pages [36KB]

Analyzes how populations interact with state revenue sharing, transportation funding, and apportionment to affect the city of Detroit. --- Summarizes Report #291 ---

pdf File Detroit Ballot Issues: Authorization Sell General Obligation Bonds,
CC 971, ( July 88 ) 4 pages

On August 2, 1988, Detroit voters were asked to authorize the issuance of $199 million of general obligation bonds in five general categories: lighting; recreation and zoo; economic development and neighborhood redevelopment; Cobo Hall completion; and Detroit Institute of Arts.

Misc., Trends in Operating Revenues and Expenditures, For The City of Detroit, 1960-1983 ( February 85 ) 26 pages

CC 891, City of Detroit Finances in 1976-77 ( January 77 ) 4 pages

CC 881, The City of Detroit Budget for 1975-76 ( July 75 ) 4 pages

CC 878, The 1974-75 Budget Problem-City of Detroit and the Outlook for 1975-76 ( February 75 ) 2 pages

Highland Park Finance

PDF File Memo to Budget Stabilization Committee of the City of Highland Park, Michigan
Memo, ( May 82 ) 3 pages

PDF File Report of the Business Advisory Committee of the City of Highland Park, Michigan
Misc., ( May 82 ) 6 pages

PDF File Comparison of Highland Park 1982-83 General Fund Budget with CRC Estimates
Misc., ( May 82 ) 1 page

PDF File Comparison of Highland Park Estimates of General Fund 1981-82 Operations with CRC Projections
Misc., ( May 82 ) 1 page

PDF File Long Range Financial Planning (City of Highland Park)
Misc., ( May 82 ) 2 pages

PDF File 1982-83 Highland Park Legal Obligations
Memo, ( May 82 ) 1 page

PDF File Highland Park: Reduce Labor Costs
Memo, ( May 82 ) 1 page

PDF File Business Advisory Committee Report (City of Highland Park)
Memo, ( May 82 ) 4 pages

PDF File Highland Park Pension Systems: Minimum Constitutional Contribution
Memo, ( May 82 ) 4 pages

Wayne County Finance

CC 991, pdf File Wayne County Ballot Issues Description of the issues surrounding millage requests for one mill for Wayne County Community College and one mill for general county operations. ( July 90 ) 4 pages

Report 269, Wayne County Charter Issues ... Financial Processes ( March 81 ) 22 pages

CC 948, Wayne County and Detroit Ballot Issues (A: Wayne County Millage Renewal; B: Abolish Wayne County Road Commission; C: Ombudsman; L: Detroit Library Operating Millage) ( July 84 ) 4 pages

Intergovernmental Fiscal Relations

Federal Expenditures in Michigan, 2007
Note 2008-05 ( November 2008 ) 3 pages

The U.S. Bureau of the Census has released its report of Federal expenditures by state for Fiscal Year 2007. (Reports for FY2005 and FY2006 were released earlier this year.) Once again, Michigan's position in total Federal spending fell a notch, from 44th in 2006 to 45th in 2007. Michigan's rank in Federal grants to state and local government, however, rose to 36th in 2007 from 40th in 2006, largely as a result of increased Federal funding of the Michigan Medicaid program and funds for Temporary Assistance to Needy Families.

Federal Expenditures in Michigan, 2006
Report 351 ( September 2008 ) 30 pages

Per capita federal expenditures in Michigan in Michigan rose from $6,414 in fiscal year 2005 to $6,671 in fiscal year 2006, but Michigan's rank among the 50 states fell from 43rd to 44th. If Michigan had received the same per capita amount as the average of the other states, $15.4 billion more in federal spending would have occurred in Michigan. This is one of the principal findings of a new report (Federal Expenditures in Michigan, 2006) released by the Citizens Research Council of Michigan.

Michigan tends to do fairly well in receiving Social Security, Medicare, and other income supplement programs, but in major areas, such as transportation and education, Michigan receives substantially less than the average.

State and local governments in Michigan did not fare much better, falling from 37th in FY05 to 40th in FY06, with the actual amount declining by $467.5 million. Increases in housing and urban development and justice were more than offset by a major decline in funding for health and human services programs.

Federal Expenditures in Michigan
Report 348 ( March 2008 ) 28 pages

In 2005 (the most recent year for which data are available), Michigan had 3.41 percent of the nation’s population, but received only 2.84 percent of all federal expenditures and obligations paid to governmental, non-profit, and for-profit entities and individuals. During the same period, Michigan state and local governments received 3.0 percent of outlays from federal grants and payments programs. If this state had received a proportion of federal payments identical to its share of population, an additional $13.0 billion would have been transferred from the federal government to governmental and nongovernmental recipients in Michigan. Included in that $13.0 billion would have been $1.6 billion in payments to the State of Michigan and Michigan local governments.

This new report from Citizens Research Council analyzes federal payments for retirement and disability, grant awards, procurement contracts, salaries and wages, and other direct payments made to governmental and non-governmental entities, as well as federal grants and payments to state and local governments. The analysis identifies federal agencies from which payments are made, types of payments, specific federal programs that disproportionately benefited Michigan and federal programs that should be scrutinized to determine whether benefits to Michigan can be increased.

The analysis suggests that more could be done to maximize potential payments from existing federal programs and to refine existing, or shape new federal programs to better meet Michigan needs.

CC 922, State Ballot Issues: Proposal A -- State Subsidy of Local Taxes (defeated 28% for to 72% against) ( May 81 ) 8 pages

Headlee Requirements

Memo 1048, pdf File The Durant Decision, On July 31, 1997, the Michigan Supreme Court held that special education programs are a State mandate and that the State had failed to fund such programs at the level required by the State Constitution. A financial settlement has been structured covering both the plaintiffs and other school districts similarly affected by the State's actions. Correcting the underfunding of special education programs is not the only Headlee Amendment issue which should concern the Governor and Legislature. An effort should be undertaken to identify and catalogue existing mandates imposed upon units of local government by the State, and to identify new mandates as they are adopted. In addition, the Legislature should invigorate the local government claims review board which it established in 1979. Finally, the Legislature needs to adopt amendments to its joint rules to establish a process to identify potential mandates, as required by the Headlee Amendment implementation legislation. ( January 98 ) 7 pages [75,136 bytes]

Tax Expenditures

 

 

 

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Last Updated January 5, 2009