LANSING – Governor Rick Snyder’s plan to convert discretionary revenue sharing from traditional payments to money local governments could obtain if they follow guidelines on financial transparency, setting performance metrics, service sharing and public employee benefits appears to have strong legislative support.
The Senate Appropriations General Government Subcommittee approved a budget (SB 177 ) Tuesday that essentially adopts Snyder’s plan. That proposal ends the $300.9 million statutory revenue sharing program and replaces it with a $200 million Economic Vitality Incentive Program.
The biggest casualties in the budget were the Michigan film incentive program, slashed by the Senate from $25 million to $10 million. Gongwer News Service first reported that move Monday. Instead of using money from the general fund, as Snyder suggested, the subcommittee drew the $10 million from tobacco tax enhanced enforcement revenue.
Pappageorge said having a $10 million appropriation would send a stronger signal about the need to discuss the program than a $100 placeholder. The House version eliminated all funding for the program.
And the subcommittee nixed Snyder’s proposal for a new $5 million program to retain young adults in Michigan.
In total, the Strategic Fund budget as reported is $45 million less than Snyder’s ($55 million less general fund).
The subcommittee decided not to include $5 million in general fund money Snyder proposed for a new program for competitive grants on technology innovations. Otherwise, the subcommittee made no changes to the budget, which totaled $1 billion.
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