Source: WLNS

Governor Jennifer Granholm is predicting more cities may face bankruptcy in the year ahead, and part of the solution, she says, should be new revenue. This is just one more issue the new governor will face on January first. The issues are mounting up, the new governor must tackle the $1.6 billion dollar deficit, revamping the business tax and now a growing list of potential bankrupt cities.

Governor Granholm: “If you continue down this path, you will have more and more cities that are going to be asking for an emergency financial manager or bankruptcy.”

The governor says there are some 68 cities, including Jackson, that are on a financial watch or are under financial stress and she contends new revenue needs to be one of the solutions. Over at the Michigan Municipal League, officials have been saying that for years. Cities are losing property tax revenue because businesses are going out of business, plus state aid to the cities is also on the decline as lawmakers reduce revenue sharing, while at the same time the cost for services is on the rise. That means there’s a chance there will be more.

Andy Shore, MI Municipal League: “No community wants to say they were the first to go into bankruptcy and the governor says they can’t, but it’s possible if the situation gets more dire and there is a bad budget, there will be communities coming in saying, we need help.”

The question is where will the new governor and lawmakers find that help.