Revenue sharing public policy studio

This policy analysis project was the final work product of a public policy studio course.

Policy Studio Project Description

The State of Michigan distributes sales tax revenues to Michigan local governments through the state revenue sharing program. The distribution of funds is authorized by the State Revenue Sharing Act, Public Act 140 of 1971. The sale tax revenue is distributed using two separate dedicated funding allocations: constitutional shared revenue; and statutory shared revenue.  Governor Snyder’s administration has introduced several changes to the statutory portion of the state shared revenue program. The constitutional portion, however, remains unaltered. In this policy studio, students  examined the constitutional portion of the Michigan State Revenue Sharing Program. Students  analyzed the current funding formula, evaluated its impact, and provided alternatives to the same. The results were disseminated to policy makers and other clients who also served as project partners.

The primary policy studio question was as follows:

What are the issues associated with a population based allocation of state revenue sharing? Can the current Michigan population based constitutional revenue sharing formula be modified to promote better service delivery and development patterns of the ground?