Using State Shared Revenues to Incentivize Local Government Behavior

State Budget Note 2012-03, July 2012

Governor Snyder signed the $49 billion fiscal year 2013 (FY2013) state budget on Tuesday, June 26. Tucked within the various appropriation line items and the related controlling provisions of the FY2013 budget is the second year of a policy shift in how the state shares its financial resources with sub-state entities – K-12 school districts and local governments. The main thrust of the shift requires these entities to engage in certain behaviors as a condition of receiving state dollars, as opposed to the previous practice of sharing state resources without “strings” attached.


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