Yeah, we’ve never experienced that, either! But the state of Michigan finds itself in that position now. Let’s take a look at what’s going on.
Here are Five Fast Facts about Michigan’s struggle to spend:
- ❓ Where Did It Come From? - The money came from $4.4 billion in COVID relief from the federal government for various projects at the local level. They did give out an unprecedented number of taxpayer dollars back then, didn’t they?
- 🏗️ The Projects - There are 13 categories of projects for these funds. Over half (53%) of the projects that are planned (or have been done already) are capital improvements like public buildings or parks, 38% were roads or infrastructure, 31% were water and sewer improvements, and 27% were public safety.
- 👍 The Intent - Those funds were intended to help local governments square up their budgets, jump start local economies, and generally invest in their communities. The Michigan Public Policy survey checks in twice a year to see how it’s going, and that’s where this info comes from. Does the survey itself count as a project that cost millions of dollars…?
- ⛔ Sharing? No Thanks - A measly 15% of local governments report working together with others on larger combined projects. Larger areas are more likely to get community involvement to prioritize spending (23%) or set up public/private partnerships (35%). Apparently the public good only extends as far as the nearest boundary line.
- 🤔 Big Concerns - Some local leaders are reluctant to pull the trigger given the one-time vs ongoing nature of these funds. Almost ⅔ report concerns about inflation, as well as supply chain issues and lack of people to do the work that needs to be done. It’s worse this year than last year, though it does appear it’s been easier to navigate the usual bureaucratic nightmare along the way.
🔥Bottom line: So how does all this impact you? Well, it really depends on your perspective. The truckloads of taxpayer dollars that were spent here come from all of us, and are a huge part of the current inflation problem, so that’s a downer. However, if you’ve gotten one of those jobs from a project that did actually take place, then GREAT!
If nothing else, it’s good for the public to be aware of what our local, state, and federal governments are doing with our money. If you feel strongly about something, get involved. At minimum, make your voice heard to your elected representatives.
Is this good for Michigan Paychecks? What do you think?
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