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Economic Implications of the Transfer of Functions Legislation

By Eric Scorsone and Joseph M. Martin

Abstract

Recent introduction of HB 4780 and its companion pieces of legislation (HB 4781-4788) has raised a number of questions about the appropriate level of government to deliver services to Michigan residents. Essentially, under provisions contained in the bill, elections, tax collections, and assessment functions would be transferred from "rural" townships to the county where the township is located. The bill defines a rural township as a township or charter township unit with population less than 10 thousand, or population between 10 and 20 thousand but does not provide police and fire on a 24-hour basis and sewer and water services to more than 50% of its residents. The Michigan Township Association (MTA) expects that 95% of Michigan townships would be subject to this legislation.Public Economics,

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