Municipal leaders across Michigan are calling on state lawmakers to adopt a Community Stabilization Plan that addresses the dire fiscal situation facing communities across the state due to the COVID-19 pandemic. The pandemic has caused a host of issues for local governments, including increased costs, decreased tax revenues, and challenges adhering to the Open Meetings Act while also maintaining social distancing protocols. The plan does not call for a tax hike, but does call on the legislature to pass a law that allows the state’s income tax communities to continue collecting income taxes as if the pandemic did not happen.
“Unless the Michigan Legislature acts quickly to pass a Community Stabilization Plan, local governments will soon be unable to conduct business and revenue losses will result in drastic cuts to public safety, infrastructure, parks, and other vital services,” says William Wild, president of the Michigan Municipal League and Westland mayor.
The plan would also address property tax laws caused by the interaction of Proposal A and the Headlee Amendment.
