Local Government Fiscal and Economic Development Issues: The Michigan Public Policy Survey (MPPS)...

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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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


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

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


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



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


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?


“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


“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%


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%


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.

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

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