Fall Conference Speakers September 23 26, 2018 Matt Booth, Attitude Expert Keynote Speaker Wednesday, September 26 8:45-10:15 am What s the Value of Your Attitude 1413 Miller Rd, Dubuque, IA 52003 563-590-9396 matt@mattbooth.com www.mattbooth.com Matt s humor, quick wit, and ability to connect with people will create meaningful attitude changes. Matt has enjoyed getting to share his message throughout the United States and with international audiences around the world. Matt grew up on a farm in Southwest Wisconsin in the heartland of America. He lives in Dubuque, Iowa on the banks of a small creek that feeds into the mighty Mississippi with his lovely wife Joie and their sons Carter and Graham. He received his undergrad at University of Wisconsin and graduated with his Master s Degree in Communication from University of Dubuque.
Fall Conference Speakers September 23 26, 2018 Tony Minghine, Associate Executive Director and Chief Operating Officer Michigan Municipal League Wednesday, September 26 10:30-11:30 am Revenue Sharing 208 N. Capitol Ave., 1st Floor, Lansing, MI 48933 734-669-6360 aminghine@mml.org mml.org Tony Minghine has devoted his career to the service of local government. He joined the League in 2006 to have an opportunity to focus on the broader policy issues surrounding local government. His tenure with the League began as the chief financial officer, and he assumed his current post in July of 2007. Tony is a regular speaker on a variety of topics effecting local government, and plays a key role in training local officials. He is a tireless advocate for local government, and frequently testifies to the state legislature on matters relating to local government finance. With over 25 years of combined experience, Tony is an expert in operational and finance issues relating to municipalities and non-profits. He is a member of the Michigan Society of Association Executives, the Governmental Finance Officers Association, and the Michigan Governmental Finance Officers Association. He is a former member of the MGFOA Board of Directors and has received awards from the GFOA for excellence in financial reporting and popular financial reporting. Tony has served on the MGFOA s legislative committee since 1998, and is a 1985 graduate of Wayne State University.
Revenue Sharing & Why it cost us Amazon? Anthony Minghine, Associate Executive Director & COO
Where we started. 2014 = Revenue sharing heist at $6.2 billion Headlee and Proposal A interactions = crippling local economies OPEB and pension liabilities = spiraling
and after years of hard work 2018 = Revenue sharing lost is at $8.6 billion and growing Headlee and Proposal A interactions = Still crippling OPEB and pension liabilities = Still spiraling Plus, there s a disconnect: People don t know what revenue sharing is and they don t care
Perception challenges - 2016 vs 2018 polls 2018 poll: Only 21% recognize that state revenue sharing to their local government has decreased over the past several years A large majority 68% either believe it has remained about the same or say they are undecided
Perception challenges - 2016 vs 2018 polls 2016 poll: 30% recognize a decrease in state assistance and 60% reported about the same or undecided It appears that in the minds of voters revenue sharing decline is the New Normal Difficult to change that mind-set
View on Business - 2018 poll Poll respondents followed old-school thinking that people go to where jobs are and businesses focus on tax rates and regulatory climate when decided where to locate. Conversely business leaders consistently say place matters. Amazon is a poster child for this. What s the single most important invention in the history of mandkind? Some will say the steam engine or the internet, but it s the city. And how your city goes is how you go. - Gordon Krater, Plante Moran
View on Taxes - 2016 vs 2018 polls 38% said their state taxes were too high vs 49% said it was too high in 2016 When asked about the value of the local tax dollar in return for quality of local services, 37% said too high
But 86% prefer their tax dollars be spent locally to provide local services Only 9% said their taxes should go to Lansing to fund state departments and agencies.
Thanks for voting yes but Historically, 80% of local new money asks are approved by voters August, 2018 primaries: - 847 local proposals - 89% new money approved - 98% for emergency services passed Good News/Bad News
Summary- 2016 vs 2018 polls People don t know what revenue sharing is or that local governments rely on it to pay for the local services residents want. The overwhelming success of local millages/tax increases has impacted public perception of the broken system People don t understand what drives a business s location choice
We need your help! We must continue to be an educational resource to raise awareness of the issues. Inside the sound box, people want us to jump to solutions Voters don t know there is a problem that needs to be solved. We need you to be honest about the problem and challenges you face.
Kalkaska $666,242 Fraser $5,479,511 Thompsonville $199,272 Elk Rapids $535,219 Lansing $71,535,780 Traverse City $5,493,219 $8.6 Billion In Lost Revenue Sharing Since 2002 Detroit $918,264,673 Big Rapids $6,170,166 Kingsley $530,966 Ludington $3,317,224 Grand Rapids $92,951,633 Mancelona $636,383
Hawaii North Dakota South Dakota South Carolina Iowa Kentucky Idaho Vermont Wyoming Texas Mississippi Utah Oregon Alaska Florida Montana New York Delaware Missouri West Virginia Louisiana Georgia Kansas Indiana New Mexico Tennessee Rhode Island Washington Maryland Alabama Oklahoma Nevada North Carolina Colorado Connecticut California Arkansas Massachusetts Arizona Illinois New Hampshire New Jersey Virginia Pennsylvania Nebraska Wisconsin Maine Minnesota Ohio Michigan 110.00% Growth in Municipal General Revenue 2002-2012 90.00% 70.00% 50.00% 30.00% 10.00% -10.00%
North Dakota Vermont South Dakota Alabama Oregon Texas Delaware Missouri Louisiana Idaho Alaska Montana Utah Tennessee Indiana Hawaii Washington Wyoming South Carolina North Carolina Nevada Connecticut Mississippi Oklahoma Virginia Arizona New York West Virginia Colorado Rhode Island Iowa New Mexico Pennsylvania Maine Illinois Florida Georgia Arkansas Ohio New Hampshire Massachusetts Maryland Wisconsin New Jersey Nebraska Kentucky California Minnesota Kansas Michigan 240.00% GROWTH IN MUNICIPAL REVENUE FROM STATE SOURCES 2002-2012 190.00% 140.00% 90.00% 40.00% -10.00% -60.00%
North Carolina Wyoming North Dakota Nevada Hawaii Maryland Texas Colorado Virginia Utah New Hampshire Oklahoma Arkansas Kansas Florida Nebraska South Carolina New Mexico Washington Alabama Vermont Alaska West Virginia Connecticut Tennessee Missouri Idaho Mississippi Arizona Montana South Dakota Kentucky Oregon Illinois Iowa Minnesota Pennsylvania Georgia New York Massachusetts Louisiana California Delaware Indiana Rhode Island New Jersey Wisconsin Ohio Maine Michigan Change in Total Local Employment (Including Education) 2004-2014 25.0% 15.0% 5.0% -5.0% -15.0% -25.0%
Community Taxable Value Never Recovers
2002-2012 29% 56%
2006-2016 Attorney State DNR DEQ General Police 50% 75%
State and Local Wages Per Capita 13 29 37 23rd th 22nd 2002 1992 1997 2007 2012
Payroll Comparison 2002-2012 24.3% 14.6% 33.5% State Payroll Cities, Villages, Twp, and County Payroll Municipal Payroll
Physical Design & Walkability Messaging & Technology Green Initiatives Welcoming Cultural Economic Development Entrepreneurship Transit Education Creating 21 st Century Communities
Quality of life and of place has declined 30 th in per capita income 2016 Bureau of Economic Analysis (http://www.bea.gov/regional/index.htm) 36 th in GDP per capita (wealth indicator) Wallet Hub analysis based on U.S. Census Bureau data 34 th in taxes paid per capita Wallet Hub analysis based on U.S. Census Bureau data
Quality of life and of place has declined 42 nd in employment as a share of population (Glaser, 2015) Metro Detroit is 38th in per capita income Metro Grand Rapids 49th of 52 metropolitan areas with populations of one million or more.
Amazon s Top Secret Requirements List Site/building Capital and operating costs Labor force -Hiring 50,000 skilled workers Logistics Time to operations Cultural community fit Community/quality of life
2018 and Beyond Continue to change the conversation Strategic Partnerships 2018 Elections Lame Duck Next Legislative Session & New Administration
If you had to pay a dollar of tax
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