Michigan Municipal League January/February 2024 Review Magazine

“ Making individual communities, not just the state overall, more attractive is key to growing the state’s population. ”

scheme, vibrant communities and successful transit can be accomplished with transit-oriented housing, walkable communities providing access to transit stops, commercial buildings close to transit stops, and other features that benefit transit users,” the study said. Cutting taxes has been a hallmark of Michigan’s economic development strategy since at least the early 1990s. That’s resulted in the state having the fifth-lowest state and local tax burden in the country, according to the conservative Tax Foundation. The CRC/Altarum study and others say tax cuts have hurt the state’s ability to fund investments needed for population growth, including healthier communities, better roads, and a cleaner environment. “It has not been a winning proposition,” Lupher said. Michigan’s general fund has been growing in nominal dollars but is estimated to be an inflation-adjusted 25 percent below 2001’s level in 2025, according to the CRC/ Altarum study.

The good news is policymakers have the ability to make new investments if they choose to do so. Michigan could boost state revenues by more than $10 billion and not hit the constitutional cap on state tax revenues. And lawmakers could undertake a sweeping reform of the state’s municipal finance system to help cities and villages become more appealing to new residents. Or, policymakers could continue on the same path and watch Michigan become older, poorer, smaller and less economically competitive against the rest of the country. Rick Haglund is a freelance writer. You may contact him at 248-761-4594 or haglund.rick@gmail.com.

East Jordan Boat Launch Rendering

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