CCP 03-09-1992 - Laserfiche WebLink

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--.- .- , I , Mayors, Managers, Clerks . Page 2 February 25, 1992 It is, of course, rather unlikely the legislature won't enact legislation correcting the problem resulting from the Governor's line item veto. But it could happen. Or, more likely, the programs included in the trust fund could be shifted around so less of the trust fund money would fund county programs. What would the counties do then? opt out, or continue their support of optional sales tax so that city property tax relief programs continue? Should the Legislature fail to adopt a new trust fund distribution formula this year, we would expect many counties to rescind the local option tax and the whole trust fund concept to collapse. However, there is a danger that some counties could act to rescind the tax, even if the legislature passes a new distribution formula which is satisfactory but not ideal from the county standpoint. In view of this hazard, I encourage city officials to take these actions: 1- Urge your legislator to support a new trust fund distribution formula which maintains the integrity of the trust fund. 2. Urge your county officials to continue to support the trust fund and the 1/2 cent local option tax, provided the legislature . passes any fairly reasonable trust fund distribution formula. Ask them to be careful that any resolution regarding rescinding the local option tax be applicable only in the event that no new distribution formula is passed in the 1992 session. 3. Point out to your county officials their action to rescind the local option tax could be negated by adoption of resolutions by the city councils and township boards having a majority of the county's population. This issue has such a potentially powerful impact on city finance that being forewarned is being forearmed. I encourage city officials most strongly to develop a contingency plan meeting such an event. I suggest you contemplate what actions your city would take and whether you might join with city councils representing a majority of the county's population to reverse any county government decision to revoke support of the 1/2 cent local optional sales tax. .