Metro Detroit Suburbs Still Making Cutbacks Because of Cash Crunch
February 25th, 2013, 6:53 AM
The Detroit News reports metro Detroit suburbs continued to scramble for funds even as the region's economy recovers, with stagnant revenues forcing leaders to continue cutting costs to stave off deficits.
Positive indicators such as rising property values, falling unemployment and more building permit requests are tempered by concerns about the rollout of the federal health care reform law and Gov. Rick Snyder's proposed personal property tax overhaul.
Municipal leaders continue to seek savings, even as some slowly try to restore services and fill vacancies. Most agree it will be a long time, if ever, before revenues return to pre-recession levels.
"The evidence points to probably the bottoming-out process," said Eric Scorsone, a Michigan State University economist. "There's still going to be issues because there are still cost pressures, but this budget cycle will not be as bad, and certainly no worse, than last year."