Over the last decade, lawmakers and governors from both political parties have used billions of dollars in sales tax collections to fill state budget holes rather than fulfill a statutory revenue sharing promise to local communities. The losses have resulted in steep cuts to public services residents rely on.
Since 2002, the legislature has withheld 8 billion dollars in funding earmarked for local governments. In 2015, the state began awarding grants to financially stressed communities but these grants are less than the promised revenue share so communities have to make tough financial decisions.
In addition, 1978’s Headlee Amendment limits annual property tax to 5% or the rate of inflation, whichever is less, making it more challenging for local governments to recover after a financial crisis like the Great Recession.
I support returning statutory revenue sharing to at least it’s 2008 level.