A major source of revenue for the City's General Fund is state-shared revenue. State-shared revenue distributes sales tax collected by the State of Michigan to local governments as unrestricted revenues. The distribution of funds is authorized by the State Revenue Sharing Act, Public Act 140 of 1971, as amended. Funding State-Shared revenue consists of two parts:
• Constitutional - 15 percent of the 4 percent gross collections of the state sales tax and distributed based on the population of the municipality;
• Statutory - 21.3 percent of the 4 percent gross collections of the state sales tax and distributed based on four factors.
For more information about State-shared revenue calculations, visit http://www.michigan.gov/treasury/0,1607,7-121-1751_2197-5658--,00.html.
The chart below shows the city's historical experience with state-shared revenue.