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January 28, 2005Study: Tax dollars fund sprawlGarfield Twp. among those cited in reportByRecord-Eagle business editor TRAVERSE CITY - State and local taxpayers spend billions to subsidize costly land-use patterns at the expense of Michigan's cities, based on a report from a land-use group. A report by the Beulah-based Michigan Land Use Institute contends state money - from economic development grants to transportation funds - is increasingly routed to newer suburbs like Garfield Township and away from central cities - and forces those residents to pay more to maintain their communities. The institute spent a year reviewing public expenditures since the late '80s and estimates taxpayers spend $10 billion a year on various economic development and transportation programs - much of it fueling sprawl into suburban and rural areas. "I think it's adding more data and facts to the discussion about the need across the state to create a new development strategy," said MLUI's Keith Schneider, who wrote much of the report. Some local planning officials agree the state's fiscal policies subsidize poor development. "There's a lot of disincentives in going into (cities) ... you can move faster and get economic gain more quickly by moving into a greenfield," said Traverse City planner Russ Soyring. "We rely on transportation that's very inefficient, and development patterns that are very costly." Garfield Township is highlighted in the report. The institute said state and local governments spent $20 million-plus in the last 30 years on business and road development that spurred traffic congestion and widespread building in the Grand Traverse County community. Other state and local initiatives criticized by the report include state revenue-sharing formulas that route more money to suburban communities and less to traditional cities. It also cited increased use of local tax abatements involving more than $3 billion worth of property - cutting revenues to local governments - and state economic "block grants" that push infrastructure and industrial parks to the outskirts of existing communities. State Sen. Jason Allen said lawmakers are taking steps to create investment in cities through tax credits, tax-free neighborhood enterprise zones within cities, and consolidation of state offices in downtowns. But Allen said state money to rural and suburban areas for roads and other economic development projects should remain part of the mix. - On the Net: www.mlui.org
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