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. This form of revenue sharing ended in Fiscal Year 2011;
• CVTRS (City, Village, and Township Revenue Sharing Program)- The State of Michigan program states:
- If a local unit's FY 2010 statutory payment was greater than $4,500, the local unit will be eligible to receive a “Percent Payment” equal to 78.51044% of its FY 2010 total statutory payment If a local unit’s population is greater than 7,500, the local unit will be eligible to receive a “Population Payment” equal to the local unit’s population multiplied by $2.64659. Local units that had a FY 2010 statutory payment greater than $4,500 and have a population greater than 7,500 will receive the greater of the “Percent Payment” or “Population Payment”.
- Will receive 100% of the maximum amount for fulfilling all of the specific requirements for Accountability and Transparency.
- Must submit the certification form and required documents for the category to qualify for payment
For more information about State-shared revenue calculations, visit http://www.michigan.gov/treasury/0,4679,7-121-1751_2197---,00.html.
The chart below shows the city's historical experience with state-shared revenue.