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Local municipal governments in Michigan hurt deeply during the recent recession find their revenues lagging former collection levels. The major source of income for most municipalities is property tax revenue which has dropped approximately 32% since 2007. In addition, a significant decline in state revenue sharing has stretched most local governments to the breaking point as they continue to strive to provide necessary services to the public.

Issues concerning employee annual health care costs, pension liabilities and retiree health care obligations, coupled with new reporting standards for local governments' statement of net position (also known as balance sheet), will continue to add to the stress cities are facing until new sources for funding can be identified and established.

Challenging times call for practical solutions. Our firm's public sector division is a well-recognized group of professionals with vast experience in servicing the unique requirements of its governmental clients. You can reach a member of the firm's National Government Practice in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040.