Local Governments Fighting For Fairness in How the State Shares Tax Dollars With Communities

Local governments in Michigan won a partial victory in the fight over how the state shares tax dollars with communities.

Michigan’s Constitution requires that about half of state revenue has to be handed to local governments.

Michigan’s Appeals Court ruled Wednesday that the state can’t count money that pays for state-mandated activities when dispersing it.

One attorney says that could add up to hundreds of millions of dollars.

He says local governments have been left on the short end of the stick for years.

The Appeals Court did also rule that the state can count aid to school districts as payments to local governments.