State Representative Joey Andrews is highlighting ways the latest state budget will benefit municipalities, in particular focusing on the restoration of revenue sharing for them.
Speaking to Benton Harbor City Commissioners this week, Andrews said the Legislature this year established a revenue sharing trust fund that can’t be touched by future lawmakers. That’s after the Legislature slashed revenue sharing to cities, townships, and villages during the Great Recession.
“Revenue sharing has never really fully recovered back to the level that it was at prior to 2009,” Andrews said. “So, with the creation of the revenue sharing trust fund, what we’re doing is we’re creating a fund that’s set aside, automatically funded in the budget, and it can’t be touched by future legislators. So the idea is that in the event of another recession, if the legislature felt that it couldn’t continue funding revenue sharing at the normal levels, the trust fund would then kick in.”
The trust fund is supported with a portion of sales tax revenue. Its creation was backed by the Michigan Municipal League.
Andrews said lawmakers are also working on a law enforcement revenue trust fund to support police departments. He said it will be based on crime statistics, and not population, so cities like Benton Harbor will receive added assistance.
Andrews is expecting Senate passage of the law enforcement trust fund bill this fall. It would then go to the governor.
