In Brief: Macomb Twp. Likely Ineligible for State Budget Incentives

Although Lansing’s current budget deal includes $30 million in additional funding for local governments, it is doubtful that Macomb Township will qualify for any part of these funds.

According to the most recent edit of the proposed state budget, $30 million is to be set aside with $15 million distributed as part of the state’s new Economic Vitality Incentive grants and the remaining $15 million destined for county revenue sharing.

However, House Rep. Ken Goike (R-Macomb Township), said he is uncertain Macomb Township will be able to access this additional funding.

“The details on how the additional money for the Economic Vitality Incentive Grants will be disbursed are one of the few things that are still being worked out,” Goike said. “I would expect that Clinton Township may be able to access some of this additional funding, but it is less clear if Macomb Township will be able to.”

Because Macomb Township did not previously qualify for statutory revenue sharing, the grants' predecessor, Goike said it is likely that Macomb will remain “on the cusp” of grant eligibility as it had previously for revenue sharing.  

Goike said he expects the actual formula dictating which cities and townships are eligible for this funding to be finalized this week.

"It's a new day in Michigan," said Rick Snyder of the proposed budget in a release. "We're leaving gridlock and negativity in the past. Michigan has not been well served by the annual budget dramas that have taken government to the brink of shutdown. We will have a timely, balanced budget in place so that our municipal and school partners can accurately plan for the coming year, avoiding the chaos that too often has been foisted upon them due to Lansing's inaction.”

The budget, as edited on May 19, is expected to eliminate Michigan's $1.5 billion deficit.

Snyder has asked his legislative partners to finalize the budget by May 31.

Other terms of the May 19 deal include:

• A that would be less than $100. The original cut proposed by Snyder was to be $300 per student. Last year, the state cut $170 from per-pupil funding.
• $310 million in funding for K-12 schools more than was originally proposed. $150 million of that would be distributed on a per-pupil basis to districts that meet "financial best practice measures." The schools would also get a one-time $160 million to help defray retirement system costs.
• $50 million for the Michigan Strategic Fund for economic development activities, including brownfield redevelopment and historic preservation incentives. 
• A $25 million cap on incentives for the film industry.
• Money for the state's rainy day funds, including $255 million for the  Budget Stabilization Fund and $133 million to a School Aid Fund reserve account.