County prepares for more revenue sharing challenges

LAPEER — Now that Gov. Rick Snyder has presented his 2013 budget recommendations, Lapeer County officials are getting a clearer picture of what to expect in terms of revenue sharing. County controller/administrator John Biscoe has all along anticipated both cuts to revenue sharing and ties to “best practices.” Snyder’s 2013 budget plan included both.

“Here we go again, a new challenge,” said Biscoe last week as he addressed county commissioners. Not only will the county suffer further revenue sharing reductions, but, under the Governor’s plan, it must meet the marks of his Economic Vitality Incentive Program (EVIP).

“We think we’ve taken the appropriate steps,” Biscoe told commissioners.

The revenue sharing pie is once again cut in Snyder’s proposed 2013 budget, this time another 25 percent for counties. The county took a 21 percent hit in the 2012 budget.

Biscoe noted drily of other local government units,“There’sa2percent constitutional increase which, of course, we don’t get.”

Cuts to revenue sharing are a bitter pill in the county environment where services are mandated by the state, and following the 2005 establishment of the state revenue sharing reserve fund when counties went off revenue sharing for several years.

In addition to the proposed 2013 cuts, there will be hoops to jump through as well.

Biscoe noted three areas of compliance under EVIP: consolidation of services, accountability and transparency, and employee compensation. The county early on anticipated and laid the groundwork for the new criteria.

“We already more than meet and exceed them,” said Biscoe.

The county has a strong record of sharing services including sharing directors with St. Clair County for Equalization and Veterans Affairs. It shares a medical examiner with several other counties.

The county has already established its dashboard on its website, along with a slew of other documents addressing accountability and transparency.

Hard caps on benefits for employees have also been implemented by the county.

If the county meets the marks in each of the three areas, Biscoe told commissioners that, based on preliminary numbers, that translates to another $5,000 less for each of the three categories than what the county will receive during 2012, roughly $417,000 per category. The county budgeted $1.248 million from revenue sharing in 2012, in its $18.7 million general fund budget.