3/28/2016 Eastpointe joins filing against state government | C & G Newspapers

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Charges allege that state has violated its own constitutional local fundingrequirements

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Posted March 23, 2016

EASTPOINTE — The Eastpointe CityCouncil voted unanimously March 15 toprovide $1,500 for a legal effort by thenewly formed nonprofit organizationTaxpayers for the Michigan Constitutionto take the state government to court overmunicipal and school revenuesharingissues.

City Manager Steve Duchane, who helpedform the group, said communities acrossthe county have discussed it, and that theyseek to end state practices that he saidhave led to less money being provided tolocal governments than the state

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constitution requires.

Duchane said that under its constitution, the state should be providing 48.9 percent of allstate spending to be used locally, going toward local municipal governments and publicschools. The state has instead been providing closer to 33 percent, he said.

“They’re not meeting that,” Duchane said. “They’re funding things such as charter schoolsthat don’t count toward local government. I’m not saying ‘yea’ or ‘nay’ on them, but theycan’t be calculated as a local government because they’re not — and the state also hasdecided to calculate spending on roads where they contract with us to maintain a (stateowned) trunk line; they’re calling that local spending, which it is not.”

The other factor, he added, is that state law limits how much a city or school can raise intaxes within its own borders through the Headlee Amendment. Duchane said the statefailed to adjust the amendment accordingly when Proposal A passed and schools startedgetting their money through the state as well.

Eastpointe Finance Director Randy Blum said that the city has lost millions over the yearssince the state started reducing its shared revenue to local governments.

“Based on how much it’s dropped over the years, if you did it cumulatively, maybe $3.5 to$4 million, maybe even more,” Blum said. “I would comfortably say if they did it right, (wewould see) $200,000 to $250,000 more a year.”

Duchane believes the issues communities like Detroit and Flint, and school districts likeDetroit Public Schools, have faced are all symptoms of these funding issues, and despiteparticipating in statedesignated task forces to come up with solutions, the Legislature hasfailed to act on them up to this point.

As a result, Duchane said the organization hopes to utilize a right under the Michiganconstitution to bring the state government to court and force it to change these fundingcalculations.

“The state has shown no interest in fixing these problems,” he said, adding that theproblem goes back to before Gov. Rick Snyder’s time in office. “We don’t believe there’s anynegotiation available to correct this without more significant legal action to force theirhand to do so.”

He said they have people at the Wayne State University law school and another law centerhelping with the “legal grinding” and filing costs, and they are trying to raise money tohelp get expert witnesses to prove their case in the courtroom.

Currently, the nonprofit has pledges of around $10,000, though Duchane said they arestill trying to raise money. Around a dozen communities have already voiced support,Duchane added, and more information is pending as the nonprofit rolls out its goals andstrategy.

Eastpointe Mayor Suzanne Pixley said the city’s donation of $1,500 is a small investmentcompared to what it could get back.

“I think the city stands to gain a great deal more than the $1,500 would cost,” Pixley said.

State Rep. Sarah Roberts, DSt. Clair Shores, and a representative of the MichiganAttorney General’s Office could not be reached by press time for comment.

For more local news coverage, see the following newspaper:

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