State leaders have put Michigan, county leaders and themselves in a difficult position after years of failing to invest resources in local services, MAC’s Deena Bosworth told a Bloomberg News reporter this week.

In a story detailing the coming crunch on Michigan’s General Fund, Bosworth said, “You can cut services, you can say you’re no longer going to have a court system, foster care. But there’s really not a lot more you can do without more revenue.’’

Bosworth was speaking in the context of the limitations in Proposal A and Headlee that have made it virtually impossible for counties to recover the property revenue crash of the Great Recession, even as Michigan property values are recovering.

“We’re running at 60 percent of what tax revenues were 10 years ago,’’ Bosworth said, referring to the inflation-adjusted revenue figures for a typical county in Michigan.

To read the entire piece, reproduced with permission from Daily Tax Report (Copyright 2017 by The Bureau of National Affairs, http://www.bna.com), click here.

Michigan needs to tailor long-term solutions to the specific circumstances of local governments struggling to cover pension and OPEB liabilities said the Michigan Association of Counties in response to the new report of a gubernatorial task force.

Gov. Rick Snyder’s Task Force on Responsible Retirement Reform for Local Government met over the winter and spring to study unfunded liabilities exceeding $14 billion for pensions, health and other benefits for employees. The group’s report properly notes that:

• “As local units across the state are unique and at different stages in dealing with this problem, there is not a one-size-fits-all solution – we must be flexible in our approach.” (page 3)
• “Attention should focus on the local units experiencing the greatest fiscal stress as it relates to pension and OPEB liabilities.” (page 3)

“It’s important for legislators and citizens to understand that there’s no overnight fix to this issue,” said Stephan W. Currie, MAC’s executive director.

Currie, who served on the 23-member panel, added, “A ‘one-size-for-all’ approach will not work for everyone, which the report rightly highlights. For example, most of our 83 county members either are in solid shape in setting aside money for these commitments or did not extend them in the first place. We need to start with a system that identifies the governments struggling with legacy costs, as is urged in the report.

“MAC is appreciative of the opportunity to participate with a diverse group of stakeholders and looks forward to working with the governor, legislators and others in the ongoing pursuit of stable funding.”

The full report and additional details are available at the governor’s website.

For more information on the Michigan Association of Counties, visit www.micounties.org.

Otsego County Board Chair Ken Borton, also MAC’s second vice president, “graduated” in June from the County Leadership Institute (CLI) put on by the National Association of Counties (NACo). With the “rigorous four-day program offered in partnership with Cambridge Leadership Associates, NACo aims to enhance the capability of county officials to identify and implement innovative solutions to complex challenges facing county government. Attendees learn how to effectively address the demands of personal leadership in a new era of government. This era is characterized as a “permanent crisis” by CLI Program Developer and Cambridge Leadership co-founder Marty Linsky.”

MAC News asked Borton what lessons he drew from the training:

1.  I learned how to better run a meeting including how to allow constructive engagement of people with opposing viewpoints. This will make for better input on issues prior to making any decisions. They used a great analogy: If you want to make great stew, you can’t just put in one or two of your favorite ingredients and expect it to turn out right. You have to put in a lot of ingredients, including some you may not think you like. Then you have to apply just the right amount of heat in order to make it meld together. On the other hand, if you have all the correct ingredients and apply too much heat, you will just boil over. If you apply too little heat, you will wind up with mush. For me, I found out that I always try to turn down the heat at meetings by using humor. I have a feeling with a little more heat my meetings will be much more productive.

2. One of the great things about the program was that I made connections with commissioners from all of the country. There are many issues faced by all counties, regardless of which state they are in. It’s an invaluable resource to have these contacts to learn from.

3. The training left me highly motivated to work with my fellow community leaders to help create a community-wide vision for social and economic growth.

For more information on CLI, visit NACo’s website.

MAC joined with a broad coalition of government and business groups at a May 30 event to highlight the ongoing, and worsening, crisis in Michigan’s physical infrastructure.

“Sound infrastructure is vital for economic growth. The drivers of our economy: manufacturing, agriculture and tourism depend on it,” said Andy Johnston, vice president of government affairs for the Grand Rapids Area Chamber of Commerce. “Infrastructure must be a data-driven discussion, and the data is clear. The Legislature needs to keep the funding promises made in 2015 for roads and begin laying the foundation to address other vital infrastructure systems.”

MAC’s Transportation Platform calls for “the logical development, interconnection and sustained maintenance of all transportation designs and infrastructures within our state.”

For more on the issue, see the press release, or visit fixmistate.org.