Revenue Sharing

All of you have heard the complaints from Townships, Cities, and Counties about the declining “revenue sharing” dollars from the state. More than 20 years ago Proposition 2 lowered property taxes and raised sales taxes. Part of this citizen approved tax shift created a formula whereby the state would collect the sales tax and pass on a specified portion to local governments. Unfortunately during the last 20 years—partly because of term limits and partly because of lapsed memories—the legislature and governor have forgotten the part of the ballot language that said a certain specified amount of the increased sales tax was to go back to local governments. The state elected officials figure that money is theirs for use in balancing the state budgets. Gradually the state has “stolen” the amount of funds designated for local governments, and used that money to balance state budgets— while leaving local governments to fend for themselves. As you have undoubtedly heard from local elected officials this results in either decreased local service, or a position of having to go to the local voters for more revenue to cover needed services. The next time you talk with your state legislators tell them to keep their hands off the share of sales tax meant for local governments.