Government

Lawmakers want more local authority over ORVs

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By ANJANA SCHROEDER
Capital News Service
LANSING – Northern Michigan local governments may soon be able to authorize off-road vehicle (ORV) regulations and ordinances. Rep. Joel Johnson, R-Clare, said he is trying to make it easier for ORV riders to use the designated trail systems within the counties in northern Michigan. The proposal would allow local governments to adopt ordinances to permit ORV riders to avoid the long detours between designated ORV routes. Riders could either drive on shoulders of state trunk line highways or local governments could authorize connections on dislocated segments of ORV trails in certain northern roadways, including ones in Mason, Gladwin, Wexford and Crawford counties. Johnson’s bill would give the state Transportation Department 60 days to decide if local governments could authorize such ordinances.

Government

Local officials fear final end of personal property tax

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By ANJANA SCHROEDER
Capital News Service
LANSING – Local governments across northern Michigan would face more budget cuts because of a personal property tax proposal passed by the Senate and awaiting House action. The proposal would exempt businesses from taxes on personal property like machines, desks and supplies. Local governments rely on the personal property tax to finance public services. Josh Reid, who chairs the Gladwin County Board of Commissioners, said he is not confident that the state will make up the loss if the proposal becomes law. “We have zero confirmation there will be replacement revenue,” he said.

Business & Economy

Local officials see reasons for fiscal optimism

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By LAUREN GIBBONS
Capital News Service
LANSING — A report suggesting local government leaders are more optimistic about their community’s fiscal health could be good news for the state, but officials say there’s still a long road to recovery ahead for many municipalities. Fewer local governments are less able to meet their fiscal 33 percent in 2012 down from 48 percent in 2011, according to a report by the University of Michigan’s Center for Local, State and Urban Policy. About 24 percent of surveyed officials indicated their communities are better able to meet fiscal needs, up from 16 percent last year. Officials in St. Ignace are seeing a similar trend on a local level, said Helen Thibault, the city’s executive secretary.

Business & Economy

Debate continues about road commissions' future

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By PATRICK HOWARD
Capital News Service
LANSING – Critics are still questioning a new law that allows a county’s board of commissioners to abolish and undertake road commission duties. While understanding the intentions of the legislation – to consolidate local government entities while saving money – skeptics say they are unsure whether the measure will actually alleviate costs. According to John Niemela, director of the County Road Association of Michigan, there is little to no evidence that consolidation would save taxpayer dollars. “Road commission administrative expenses are very low,” Niemela said. “The bulk of a road commission’s funding is directed toward static expenses such as road materials, road maintenance and road improvement projects.

Government

Counties, business groups, state officials seek ways to stem revenue loss from tax reform

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By ALEX MITCHELL
Capital News Service
LANSING—With Gov. Rick Snyder planning to propose reforms to Michigan’s personal property tax this month, many counties and businesses are speculating about potential ways to replace lost revenue. Businesses pay personal property tax on their equipment. Critics say the tax discourages businesses from growing because they pay more as they invest in equipment. But local governments are worried because the tax accounts for anywhere from 3 percent to 27 percent of revenue for Michigan counties. “We won’t be proposing to totally do away with personal property taxes but to both change the way the system works and get rid of certain classifications of personal property taxes that do the most harm to Michigan,” Lt. Gov. Brian Calley said.

Business & Economy

New state rules cut part of local revenue sharing

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By JACOB KANCLERZ
Capital News Service
LANSING – Under Michigan’s new revenue sharing system for municipalities, most local governments will lose a third of their share and some townships won’t get anything at all. That tough new reality has rankled some in local government. “We believe that if there’s going to be revenue sharing, it should be shared amongst all government units,” said Bill Anderson, the legislative liaison for the Michigan Townships Association. Municipalities are eligible for two types of revenue sharing. All municipalities receive money based on population, which is guaranteed by the state constitution.