- Video shows Jackson County Administrator Michael Overton and other participants at Jackson's "State of the Community" event
- Bonus video: a full interview with Michael Overton
- The way local governments are funded in Michigan is "broken", says Overton.
- Inflation and expenses are outpacing revenue year after year.
(The following is a transcription of the full broadcast story)
At Ella Sharp Museum, Jackson's movers and shakers gathered Friday to hear reports on "The State of the Community".
From a farmers' market inside the old prison walls to a bike trail and 100 homes, there are a lot of plans in Jackson County.
But with Friday's updates on the work, also — the difficult reality:
"I've been saying this for years: how we fund local government in Michigan is broken," says Jackson County Administrator Michael Overton.
Overton says the problem is that inflation is outpacing revenues...a formula-driven in part by Proposal A. Passed in 1994, Proposal A caps property tax increases at 5%.
"Every year, our revenue can only go up by 5%, or inflation — the lesser of the two, while my expenses go up at 8–9%," he notes.
The result is less money every year to provide the same services and maintenance.
"I've told the Board [of County Commissioners]: we've already cut all the way…how are we going to continue to fund local government unless something changes?" Overton wonders.
I asked Overton after the discussion whether any "outside the box" solutions are being contemplated at the state level. Overton says "No". So far, the solution has been millages:
"...animal shelter millage. We have parks millage. We have a department of aging millage. We have a medical care facility millage, to help take care of people who can't…we have a mental health millage. So, our community has stepped up numerous times, as well as for jail millages and things like that."
But millages don't always pass. And there are state and local caps on those, as well.
At the same time, says Overton, state revenue-sharing has declined.
"Sadly, it gets more difficult every year."
BONUS VIDEO — WATCH THE FULL INTERVIE W:
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