Tagged: local government

Hundreds of Michigan cities are not saving enough to cover their future retiree health care costs.

A new report says more than 300 Michigan municipalities have in excess of $13 billion in unfunded liabilities for health care costs of retired public employees.

Michigan State University researchers found only half of the municipalities are prefunding retiree health care. The rest are setting aside no money despite longer lifespans and rapidly rising health costs.

While the collective bill of funding those benefits is $12.7 billion, the bulk of it, almost $11 billion, is attributable to local governments in a 10-county region of Southeast Michigan including Oakland, Macomb and Wayne counties. The city of Detroit alone will owe $5 billion in retiree health care costs.

But MSU professor Eric Scorsone says cities like Grand Rapids, Flint, Lansing and Saginaw also face difficult choices.

“That’s already happening today….these cities…are paying millions of dollars in retiree premiums so it’s already having an effect and it will have an even bigger effect in the future,” says Scorsone.

Scorsone says the new national health care law may help some.   But tax increases, budget cuts or broken promises to retirees are inevitable, unless the state takes action.

A new poll shows local government leaders are concerned about proposals to repeal or greatly change Michigan’s personal property tax.

Michigan’s personal property tax focuses on assets like furniture, equipment, computers and other temporary investments.

Businesses have complained for years about the personal property tax.  Critics complain the tax is an obstacle to reinvestment and attracting new investment to Michigan

But the tax generates hundreds of millions of dollars for local governments.

Believe it or not, many of Michigan’s local leaders are satisfied with union negotiations.

According to Tom Ivacko, administrator and program manager of Ford School’s Center for Local, State and Urban Policy, the relationship between jurisdiction and its employees is quite positive.

Ivacko oversees the Michigan Public Policy Survey program. He spoke today with Cyndy about these relationships.

Getting along with your neighbors isn’t always easy. So Governor Rick Snyder came up with a pretty simple plan to get townships, counties and cities to find new ways to work together; give them some kind of incentive, specifically, money.

Michigan Department of Treasury spokesman Terry Stanton says these Competitive Grant Assistance Grants are incentives to get neighboring cities, townships and counties to work together in new ways.

Some of Michigan’s city and township officials are worried about a bill that would limit how much they could charge for public information requests. The state House Oversight, Reform, and Ethics Committee opened hearings Tuesday on measures to make it easier and cheaper to file Freedom of Information Act requests.

Bill Anderson of the Michigan Townships Association said local governments are already losing money processing requests.