Local Government Local Government Fiscal and Economic Fiscal and Economic Development Issues:Development Issues:The Michigan Public Policy The Michigan Public Policy
Survey (MPPS)Survey (MPPS)
Presentation for the Michigan Municipal League Presentation for the Michigan Municipal League (MML)(MML)
Annual ConventionAnnual ConventionSeptember 24, 2009September 24, 2009
Presentation OutlinePresentation Outline Brief background on the University of Brief background on the University of
Michigan’s Center for Local, State, and Michigan’s Center for Local, State, and Urban Policy (CLOSUP)Urban Policy (CLOSUP)
Overview of the Michigan Public Policy Overview of the Michigan Public Policy Survey (MPPS)Survey (MPPS)
Summary of findings on fiscal health and Summary of findings on fiscal health and economic development from the Spring economic development from the Spring 2009 Wave of the MPPS2009 Wave of the MPPS
Next stepsNext steps
Background:Background:An Overview of CLOSUPAn Overview of CLOSUP
The Center for Local, State, and Urban Policy The Center for Local, State, and Urban Policy (CLOSUP) was founded in 2001 and is housed (CLOSUP) was founded in 2001 and is housed in the UofM’s Gerald R. Ford School of Public in the UofM’s Gerald R. Ford School of Public PolicyPolicy
CLOSUP is a small research center with a core CLOSUP is a small research center with a core staff of 3 permanent employees and additional staff of 3 permanent employees and additional research staff working on a variety of projectsresearch staff working on a variety of projects
Base funding comes from the University of Base funding comes from the University of Michigan, with additional funds raised from Michigan, with additional funds raised from external sources for specific projectsexternal sources for specific projects W.K. Kellogg Foundation is supporting the MPPSW.K. Kellogg Foundation is supporting the MPPS
Background:Background:The Mission of CLOSUPThe Mission of CLOSUP
The Center’s primary mission is to conduct The Center’s primary mission is to conduct and support applied academic research that and support applied academic research that informs local, state, and urban policy issues, informs local, state, and urban policy issues, and that furthers academic knowledgeand that furthers academic knowledge Dual goals: policy-relevant; theoretically motivatedDual goals: policy-relevant; theoretically motivated Focus on public serviceFocus on public service
CLOSUP also seeks to facilitate student CLOSUP also seeks to facilitate student learning and engagement with today’s learning and engagement with today’s critical local, state, and urban policy issuescritical local, state, and urban policy issues
Background:Background:An Overview of CLOSUPAn Overview of CLOSUP
Activities:Activities: Conduct internal research projects such as the MPPSConduct internal research projects such as the MPPS
Sponsor state and local policy-relevant research by other faculty across UM: 51 projects sponsored to dateSponsor state and local policy-relevant research by other faculty across UM: 51 projects sponsored to date
Events: conferences, seminars, lectures, panel discussionsEvents: conferences, seminars, lectures, panel discussions
Teaching and student-focused activities: Teaching and student-focused activities: Ford Ford
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Presentation OutlinePresentation Outline Brief background on the University of Brief background on the University of
Michigan’s Center for Local, State, and Michigan’s Center for Local, State, and Urban Policy (CLOSUP)Urban Policy (CLOSUP)
Overview of the Michigan Public Policy Overview of the Michigan Public Policy Survey (MPPS) Survey (MPPS)
Summary of findings on fiscal health and Summary of findings on fiscal health and economic development from the Spring economic development from the Spring 2009 Wave of the MPPS 2009 Wave of the MPPS
Next stepsNext steps
Michigan Public Policy Survey: Michigan Public Policy Survey: GenesisGenesis
Problem: information gap in the policymaking Problem: information gap in the policymaking processprocess
Great deal of data on Michigan’s citizens – MSU State of Great deal of data on Michigan’s citizens – MSU State of the State Surveythe State Survey
Great deal of data on Michigan’s businesses – various Great deal of data on Michigan’s businesses – various business surveysbusiness surveys
Lack of ongoing data on Michigan’s local governments Lack of ongoing data on Michigan’s local governments and public officialsand public officials
Solution: new ongoing survey program focused on Solution: new ongoing survey program focused on local government and local government leaderslocal government and local government leaders
Michigan Public Policy Survey: Michigan Public Policy Survey: OverviewOverview
Conducted twice per year (Spring and Fall)Conducted twice per year (Spring and Fall) One or two main topics in each wave, plus satellite batteries of One or two main topics in each wave, plus satellite batteries of
questions questions Spring 2009: Spring 2009: Fiscal and Economic Development IssuesFiscal and Economic Development Issues Fall 2009: Fall 2009: Economic, Educational, and Workforce DevelopmentEconomic, Educational, and Workforce Development Spring 2010 (tentatively): Spring 2010 (tentatively): Intergovernmental CooperationIntergovernmental Cooperation
Surveys are developed in close partnership with MML, Surveys are developed in close partnership with MML, MTA, and MAC, as well as experts from around the state MTA, and MAC, as well as experts from around the state and nationand nation Key focus: informing important state and local policy debatesKey focus: informing important state and local policy debates
Surveys are administered online for ~3/4 of the sample, via Surveys are administered online for ~3/4 of the sample, via hardcopy questionnaire for ~1/4 of the samplehardcopy questionnaire for ~1/4 of the sample Targeted respondents are the chief elected and the chief appointed official Targeted respondents are the chief elected and the chief appointed official
in each county, city, township and villagein each county, city, township and village
Goals for the Survey ProgramGoals for the Survey Program Fill the critical information gap about the challenges of policymaking at the local levelFill the critical information gap about the challenges of policymaking at the local level
Assist Assist youyou as local leaders: provide information about your peers across the state, as local leaders: provide information about your peers across the state, improve policymaking, spread best practices and grass-roots innovative solutions improve policymaking, spread best practices and grass-roots innovative solutions
Provide a voice for local-level concerns to policymakers in Lansing, Provide a voice for local-level concerns to policymakers in Lansing, foundations, community organizations, etc. foundations, community organizations, etc.
Build longitudinal data archive to allow tracking of fundamental changesBuild longitudinal data archive to allow tracking of fundamental changes
Further academic knowledge and build student interest in local governmentFurther academic knowledge and build student interest in local government
Intended productsIntended products Publications: policy briefs and reports; press releases; tailored reports for Publications: policy briefs and reports; press releases; tailored reports for specific jurisdictions or regions; tailored reports for MML, MTA, MAC specific jurisdictions or regions; tailored reports for MML, MTA, MAC
Presentations: conferences, workshops, training sessionsPresentations: conferences, workshops, training sessions
Academic and student papers, presentations, etc.Academic and student papers, presentations, etc.
Long-term data archive Long-term data archive
Michigan Public Policy Survey: Michigan Public Policy Survey: OverviewOverview
Presentation OutlinePresentation Outline Brief background on the University of Brief background on the University of
Michigan’s Center for Local, State, and Michigan’s Center for Local, State, and Urban Policy (CLOSUP)Urban Policy (CLOSUP)
Overview of the Michigan Public Policy Overview of the Michigan Public Policy Survey (MPPS) Survey (MPPS)
Summary of findings on fiscal health and Summary of findings on fiscal health and economic development from the Spring economic development from the Spring 2009 Wave of the MPPS2009 Wave of the MPPS
Next stepsNext steps
General topics covered in the Spring wave:General topics covered in the Spring wave:
Predictions about future fiscal health and changes Predictions about future fiscal health and changes in important revenues, expenditures, and other in important revenues, expenditures, and other budget issuesbudget issues
Economic development Economic development
Intergovernmental cooperation and regional land Intergovernmental cooperation and regional land use planninguse planning
Implementation of the American Recovery and Implementation of the American Recovery and Reinvestment Act (ARRA), Reinvestment Act (ARRA), akaaka the Federal the Federal Stimulus Package Stimulus Package
MPPS: Spring WaveMPPS: Spring Wave
MPPS: Response RatesMPPS: Response Rates
Spring 2009 wave contacted the top elected and Spring 2009 wave contacted the top elected and top appointed official in every local Michigan top appointed official in every local Michigan jurisdiction jurisdiction 1,591 total respondents1,591 total respondents 1,204 unique jurisdictions1,204 unique jurisdictions 281 respondents from 202 cities and 281 respondents from 202 cities and
131 respondents from 104 villages 131 respondents from 104 villages 65% response rate by unit (63% of counties, 65% response rate by unit (63% of counties,
72% of cities, 38% of villages, and 68% of 72% of cities, 38% of villages, and 68% of townships)townships)
76% of survey responses were completed online76% of survey responses were completed online
MPPS: A Brief Summary of MPPS: A Brief Summary of ResultsResults
MPPS: Future Financial MPPS: Future Financial ConditionsConditions
Do you think that during the next twelve months your community Do you think that during the next twelve months your community will have good times, bad times, or neither financially?will have good times, bad times, or neither financially?
PercentagPercentage of all e of all cities and cities and villages villages reporting:reporting: 6% 8%6% 3%
57%
77%
62%
76%
Population<1,500
Population1,500-5,000
Population5,001-10,000
Population>10,000
Good Times Bad Times
MPPS: Future Financial MPPS: Future Financial Conditions (con’t)Conditions (con’t)
Would you say that your unit of government is less Would you say that your unit of government is less able or better able to meet its financial needs?able or better able to meet its financial needs?
Percentage of Percentage of all cities and all cities and villages who villages who reported being reported being “somewhat” or “somewhat” or “significantly” “significantly” less ableless able to to meet needs:meet needs:
68% 71%76%
73%
81% 81%86% 85%
Population<1,500
Population1,500-5,000
Population5,001-10,000
Population>10,000
this fiscal year next fiscal year
MPPS: Changes in Revenue and MPPS: Changes in Revenue and ExpendituresExpenditures
Comparing your jurisdiction’s current fiscal year to its previous Comparing your jurisdiction’s current fiscal year to its previous fiscal year, has there been a decrease, increase, or no change…fiscal year, has there been a decrease, increase, or no change…
(percent reporting “greatly” or “somewhat” increase/decrease)(percent reporting “greatly” or “somewhat” increase/decrease)
Cities Villages Counties TownshipsDecrease in state aid 80% 78% 86% 69%Decrease in revenue from fees 65% 43% 71% 56%Decrease in revenue from property taxes 64% 51% 51% 45%
Increase in infrastructure needs 82% 70% 72% 45%Increase in cost of current employee health benefits 81% 78% 74% 38%Increase in human service needs 67% 44% 87% 40%Increase in employee wages and salaries 65% 49% 64% 25%
MPPS: Anticipated Changes in MPPS: Anticipated Changes in Budgetary PolicyBudgetary Policy
What actions will your jurisdiction take in the What actions will your jurisdiction take in the next fiscal year?next fiscal year?
(percent reporting “greatly” or “somewhat” (percent reporting “greatly” or “somewhat” increase/decrease)increase/decrease)
Cities Villages Counties TownshipsDecrease workforce hiring 51% 13% 61% 11%Decrease amount of services provided 41% 33% 47% 17%Decrease actual infrastructure spending 41% 36% 39% 27%Decrease funding for economic development programs 30% 23% 38% 11%
Increase number of interlocal agreements 50% 38% 55% 28%Increase privatizing or contracting out of services 33% 20% 21% 11%
MPPS: Economic Development MPPS: Economic Development Assets and BarriersAssets and Barriers
To what degree would you consider the following items as To what degree would you consider the following items as barriersbarriers or or assetsassets to your jurisdiction’s economic development efforts? to your jurisdiction’s economic development efforts?
(percent reporting “significant” or “somewhat” asset/barrier)(percent reporting “significant” or “somewhat” asset/barrier)
ASSETSCities/VillagesCountiesTownships
K-12 education system 75% 68% 57%Recreational facilities 67% 76% 49%Cost of housing 60% 64% 33%Availability of appropriate workforce 54% 50% 34%Vocational and higher education system 53% 65% 41%Cost of labor 46% 53% 27%Availability of land 35% 53% 49%
BARRIERSAvailability of capital/funding 68% 70% 54%Presence of major employers 48% 45% 59%Distance to major markets 40% 64% 51%Environmental regulations 39% 54% 41%Traditional infrastructure 34% 33% 52%Information technology infrastructure 29% 53% 42%
MPPS: Economic Development MPPS: Economic Development TargetsTargets
Are any of the following sectors a focus of your Are any of the following sectors a focus of your current economic development efforts?current economic development efforts?
26%
24%
10%
20%
18%
15%
31%
16%
8%
14%
34%
37%
56%
65%
4%
12%
27%
38%
64%
66%
77%
4%
54%
40%
63%
69%
31%
69%
None
Forestry andAgriculture
Energy
Tourism/Hospitality
Manufacturing
Retail
Small Business
Townships Villages Cities Counties
MPPS: Economic Development MPPS: Economic Development AssistanceAssistance
66%
43%
40%
39%
70%
41%
53%
38%
60%
71%
70%
30%
34%
52%
51%
22%
Financing
Grant writingassistance
Informationabout state,
federal orprivate grants
Informationabout economic
developmentbest practices
Counties Cities Villages Townships
What types of external assistance or resources would be most What types of external assistance or resources would be most valuable for improving your economic development capabilities?valuable for improving your economic development capabilities?
90%
75%
75%
64%
67%
0%
64%
59%
40%
75%
53%
2%
29%
32%
29%
43%
24%
17%
21%
27%
16%
27%
12%
29%
EconomicDevelopment Agency
Partnering with otherlocal governments
Tourism Promotion
Tax abatements
Partnering with othernongovernmental
organizations
None
Counties Cities Villages Townships
MPPS: Economic Development MPPS: Economic Development StrategiesStrategies
Does your jurisdiction use any of the following economic Does your jurisdiction use any of the following economic development strategies to attract or retain businesses?development strategies to attract or retain businesses?
MPPS: Economic Development MPPS: Economic Development StrategiesStrategies
“Placemaking”“Placemaking” Is your jurisdiction currently engaged in any Is your jurisdiction currently engaged in any
placemaking programs or projects?placemaking programs or projects?
50%
28%
43%
64%
8%7%
Cities Villages
Yes No Don't Know
MPPS: Economic Development MPPS: Economic Development StrategiesStrategies
“Placemaking”“Placemaking” How confident are you that placemaking can be an effective How confident are you that placemaking can be an effective
economic development strategy for your jurisdiction?economic development strategy for your jurisdiction?
26%14%
39%
32%
7%
16%
Cities Townships
Completely confident Somewhat confident Don't Know
MPPS: Regional CooperationMPPS: Regional CooperationLand Use PlanningLand Use Planning
Do you think your jurisdiction’s involvement in regional land Do you think your jurisdiction’s involvement in regional land use planning efforts is too much, just right, or not enough?use planning efforts is too much, just right, or not enough?
18% 12%
29%35%
43%48%
40% 26%
39% 39% 29%37%
3% 2%
Counties Cities Villages Townships
Don't know Not enough Just right Too Much
MPPS: Stimulus Package MPPS: Stimulus Package ImplementationImplementation
How informed do you feel you have been about the opportunities How informed do you feel you have been about the opportunities available to your jurisdiction through the Stimulus Package?available to your jurisdiction through the Stimulus Package?
6% 8%19% 24%
24% 19%
23%
28%
11%55% 58%
44%
33%
10% 11% 11%
4%5%
3%
4%
Counties Cities Villages Townships
Completely Informed
Somewhat Informed
Neither Informed NorUninformedSomewhat Uninformed
Not At All Informed
MPPS: Stimulus Package MPPS: Stimulus Package ImplementationImplementation
Overall, do you think the Stimulus Package will significantly Overall, do you think the Stimulus Package will significantly help improve the economic conditions in your community?help improve the economic conditions in your community?
Cities:Cities:VillageVillages:s:
Yes 20%
No61%
Don't Know19%
Yes 18%
No66%
Don't Know16%
MPPS: Review of Key FindingsMPPS: Review of Key Findings Over half of all villages and two-thirds of cities predict bad times Over half of all villages and two-thirds of cities predict bad times
financially in the year ahead. financially in the year ahead. The widespread fiscal distress is causing many municipalities to The widespread fiscal distress is causing many municipalities to
predict decreases in workforce hiring, service provision and predict decreases in workforce hiring, service provision and funding for economic development and infrastructure, as well as funding for economic development and infrastructure, as well as increases in interlocal agreements and contracting out of increases in interlocal agreements and contracting out of services.services.
Municipalities see lack of capital as the greatest barrier to Municipalities see lack of capital as the greatest barrier to economic development, while local education systems are often economic development, while local education systems are often cited as one of the greatest assets. cited as one of the greatest assets.
Placemaking and regional land use planning appear to have Placemaking and regional land use planning appear to have widespread support among cities and, to a lesser extent, villages.widespread support among cities and, to a lesser extent, villages.
Fewer than one in five municipal officials think the Stimulus Fewer than one in five municipal officials think the Stimulus Package will significantly improve economic conditions in their Package will significantly improve economic conditions in their community.community.
Presentation OutlinePresentation Outline Brief background on the University of Brief background on the University of
Michigan’s Center for Local, State, and Michigan’s Center for Local, State, and Urban Policy (CLOSUP)Urban Policy (CLOSUP)
Overview of the Michigan Public Policy Overview of the Michigan Public Policy Survey (MPPS) Survey (MPPS)
Summary of findings on fiscal health and Summary of findings on fiscal health and economic development from the Spring economic development from the Spring 2009 Wave of the MPPS2009 Wave of the MPPS
Next stepsNext steps
Michigan Public Policy Michigan Public Policy Survey: Next StepsSurvey: Next Steps
Spring 2009 survey key findings reportSpring 2009 survey key findings report
Jurisdiction-specific reports from first wave Jurisdiction-specific reports from first wave
Fall 2009 survey in the field in October, Fall 2009 survey in the field in October, focused on economic, educational, and focused on economic, educational, and workforce issues.workforce issues.
Spring 2009 survey, tentatively focused on Spring 2009 survey, tentatively focused on intergovernmental cooperationintergovernmental cooperation
We are seeking your feedback on how to make We are seeking your feedback on how to make the MPPS as useful as possible to you: email us the MPPS as useful as possible to you: email us at at [email protected] or call 734-647-4091