Cities, Fiscal Health and Union Contracts

Capitol Confidential ^ | 8/24/2010 | Tom Gantert

[MichCapCon]

Local governments are in declining fiscal health that many top administrators believe will get worse in the coming year, according to a University of Michigan report.

The report states that "declining state aid, federal aid, and revenue from fees and licenses are also problems across the state."

The survey was conducted by the Center for Local, State, and Urban Policy, which does the survey every two years. The center is located at U-M's Gerald R. Ford School of Public Policy.

According to a press release, the survey was conducted in the spring of 2009 and 2010 and about 1,300 "top elected and appointed officials" responded each year.

"We are not surprised," said Summer Minnick, director of state affairs for the Michigan Municipal League. "This is stuff we've known for years."

Minnick said local municipalities face the most restrictive limitations in the country in terms of raising money." Minnick pointed to constitutional provisions like the Headlee Amendment and to a state Supreme Court decision that ruled fees can't be used to raise revenue but must serve a regulatory purpose.

"This is going to be a problem the local government will face for years. It doesn't really matter if our economy turns around, our revenue streams are really restricted," Minnick said. "... Everybody wants government to function like a business, but they can't."

Minnick said part of the reason was union contracts...

[Ev Reeman]

Union penmsions and contracts are bankrupting America state by state starting with California, Michigan, Illinois, Massachusetts and New York.

[Psycho_Bunny]

"Everybody wants government to function like a business, but they can't."

Really? You'd be surprised at the motivational power of tarring and feathering a few people.