Legislation Would Offer Low-Interest Emegency Loans to Cash Strapped Cities, School Districts
The loan program would be increased from $5 million to $100 million.
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State Rep. Mark Ouimet, R-Scio Twp., says that Michigan’s struggling school districts and municipal governments will be able to receive low-interest emergency loans thanks to legislation that passed the house last week.
"Some of our local cities, township, villages and schools have struggled with declining revenues due to the state's economic hardship," Ouimet said. "These important measures provide another tool for stressed municipalities to help deal with a financial emergency that actually could cost taxpayers more in the long run."
Ouimet, chairman of the House Local, Intergovernmental and Regional Affairs Committee, shepherded the bills through the committee process, according to a news release issued by his office. House Bills 5566-70 allow the state treasurer to make $100 million available to schools and governments in distress. The legislation increases funding for an existing loan program.
Ouimet’s Democratic opponent in the November election for the 52nd District, Gretchen Driskell, bristled at the announcement.
“I find it ironic that the state is setting up a ‘low-interest emergency fund’ for schools and local government after they chose to cut over $600 million in revenues to schools and local governments last year, after years of understandable cuts due to the economy, in order to pay for a business tax cut,” said Driskell, the longtime Mayor of Saline.
Driskell said municipalities are hurting because Lansing has failed to live up to its promises.
“Here in Saline we have not received over $4 million in statutory revenue sharing since Proposal A was enacted. Across our county K-12 budgets were cut by the state over $10 million last year. If the personal property tax is eliminated as is being proposed that would be an estimated $43M elimination of revenue to schools, local government and libraries in our county alone,” Driskell said. “Are they planning on increasing the ‘emergency loan’ fund after that is implemented?”
The extra funding may be issued until Sept. 30, 2018, under the legislation. Ouimet said no local governments have ever defaulted on a loan in the existing program. The program currently contains $5 million annually in funding for the loans.
The bills, approved with bipartisan support, now go to the Senate for consideration.
D Friese
10:01 am on Tuesday, June 12, 2012
The financial crisis was created by Mr Ouimet and legislators of his ilk by enacting a 83% tax cut for business while driving public entities into financial instability. Now he wants to come across as the great benefactor for local units of government. His actions created the declining revenues. Mr Ouiment's public persona as a caring public servant is in direct contrast to his voting record. He is just another puppet in Snyder's army which since assuming office has enacted legislation in violation of the state constitution, denied communities of local representation, voided contracts, forced public colleges and universities to raise tuition rates and enacted draconian funding cuts to K-12 schools.
John Carter
8:56 pm on Tuesday, June 12, 2012
Geez David, you forgot to include the Koch brothers in your latest rant. Perhaps holding the line on over the top salaries and benefits at our universities would have also held the line on tuition. Same with K-12, the years of automatic raises without any performance feedback, no health care contributions, etc. I guess the two failed attempts at Synder re-calls shows that the general populace is okay with the tough choices that needed to be made to move this state forward. The times are a changing, you and your ilk might take notice and come up with something new, not the tired tax and spend policies of old. Driskell has nothing to show for her tenure as mayor besides empty store fronts and a "big dirt hole". She'll have nothing better in the legislature.
Liz Davis
3:31 am on Saturday, August 25, 2012
They really know the essence of generosity towards the people. They know how risky it is to offer a lower interest rate on loan but they still give the offer no matter what. They have also given quite a good deal too. - http://lizloans.com