Circle of Blue
  • Podcasts
  • Great Lakes
  • Tapped Out
  • Water Debt
  • WASH
  • WaterNews
    • WaterNews
      • The Daily Stream
      • Federal Water Tap
      • Fresh
      • Weekly Water Newsletter
      • HotSpots H2O
      • Convenings
        • Special Reports
          • Drying American West
          • Water, Texas
          • Legionnaires’
          • Fair Bluff
          • After Paradise Burned
          • Water Scarcity in India
          • Michigan’s Groundwater Emergency
          • Groundwater
          • Water Pricing
          • Water Affordability
          • Delhi Waits For Water
  • Features
    •  
      • Water and Financial Risks
      • Stranded Assets
      • Lake Mead
      • Cape Town
      • Flint Water Crisis
      • California Drought
      • Australia
      • Himalayas
      • Hidden Waters, Dragons in the Deep
      • Designing Waters Future
      • Zeropolis
        • Big Cities, Little Water
      • Water and Climate
      • Septic Infrastructure in the U.S.
      • Unearthing Water Risks of The Global Mining Industry
      • Chennai
  • Choke Point
    • The World at a Choke Point
      • Choke Point: Australia
      • Choke Point: Tamil Nadu
      • Choke Point: South Africa
      • Choke Point: China
      • Choke Point: India
      • Choke Point: Australia
      • Choke Point: Tehuacán Valley
      • Choke Point: U.S.
        • Choke Point: Index
          • California Central Valley
          • Great Lakes Algae
          • Ogallala Aquifer
          • Water Data
  • About
    • Fellowship
    • About Circle of Blue
    • Team Members
    • Board of Directors
    • Ethics and Sponsorship
    • Internships
    • Underwriters
    • Contact Us
  • Donate
  • Search
  • Menu Menu

Short-Changing Michigan Local Governments Has Resulted in Deteriorating Water Systems and Other Services

Many of Michigan’s 1,773 cities, villages, and townships are reaching a water infrastructure crisis point.

Throughout the Great Lakes region and across the U.S., water systems are aging. In some communities, this means water bills that residents can’t afford or water that’s unsafe to drink. It means that vulnerable systems are even more at risk in a changing climate. From shrinking cities and small towns to the comparatively thriving suburbs, the true cost of water has been deferred for decades.

As the nation prepares to pour hundreds of billions of federal dollars into rescuing water systems, the Great Lakes News Collaborative investigates the true cost of water in Michigan. 

A City of Tecumseh crew excavates part of a concrete driveway to get to a broken water main. Getting enough money from the state and federal governments to help maintain city services has become a struggle for many Michigan municipalities. Lester Graham / Michigan Radio

This is part six of a ten-part series.

By Lester Graham, Michigan Radio – May 9, 2022

Michigan has had its share of disasters. Dams collapsed after heavy rains, flooding Midland. A sinkhole the size of a football field was caused by a sewer collapse in Macomb County. And in Flint, children were exposed to lead-contaminated water.

“Flint was a financial crisis long before it was a water crisis, and those two things are intricately connected,” said Stephanie Leiser, a lecturer with the Ford School of Public Policy at the University of Michigan. She says cities and towns across Michigan face increasingly desperate choices as they struggle to maintain their infrastructure – many of them with a shrinking number of taxpayers to foot the bill.

Many of Michigan’s 1,773 cities, villages, and townships are reaching a crisis point because of a decline in federal dollars for water and sewer infrastructure that’s made worse by the state’s centralized taxing system.

Small disasters can be devastating, too. Many of Michigan’s rural communities have to haul water in trucks to fight fires. That’s because they cannot put too much of a strain on the water system by tapping the fire hydrants. 

That’s the case in the small village of Akron, in Tuscola County.

“I know if we start using too much water, we end up not having to use the hydrants because we can’t let the pressure get too low and make everybody boil water, so we’ll stop using the hydrants,” Marvin Hasso Jr. of the village’s Department of Public Works, a one-man operation, explained.

As we explained earlier in this series, Akron’s water tower has reached its life expectancy and doesn’t have the capacity to hold the amount of water that’s recommended by the state. Hauling water is the only alternative.  

“There has been significant disinvestment in our communities over the course of the last couple of decades. And you couple that with a restrictive property tax system and it absolutely squeezes local government at its core, which is to provide service,” said John LaMacchia, director of State and Federal Affairs for the Michigan Municipal League.

He is one of many people who work closely with Michigan’s cities and villages who are pleading with state government to stop short-changing the municipalities responsible for providing critical services such as safety and water.

Revenue Sharing graph. Michigan House Fiscal Agency.

We used to build in America

 

Much of the water and sewer infrastructure in Michigan began with a huge move by the federal government to fund the building of water and sewer systems starting in the late 19th century. The federal government passed the Clean Water Act in 1972, and spending on drinking water and wastewater systems skyrocketed. By the late 1970s the federal government was spending more than $20 billion (in 2022 dollars) a year on water and wastewater utility infrastructure.

 That federal investment fell dramatically after 1980 and continued to decline to as little as $2 billion in 2008. The American Recovery and Reinvestment Act of 2009 caused a spike in spending on water infrastructure, but it quickly fell back to about $3 billion a year.

“There’s been a drastic shift in the amount of money that the federal government used to put into these systems compared to what they do now,” said LaMacchia with the Municipal League.

A work crew gets ready pump out water as it digs down to repair a broken water main. Lester Graham / Michigan Radio

Not sharing as fairly

The State of Michigan has also been indirectly reducing the money that municipalities can spend on water and wastewater infrastructure through a series of changes in how Michigan distributes taxes.

The Headlee Amendment to the Michigan Constitution 1978 put complicated limits on state and local taxes. Then Proposal A, passed by voters in 1994, put further restrictions on how property taxes could increase. With rising property values and tax hikes, that seemed like a great idea at the time. But with the Great Recession, property values dropped significantly. They’ve recovered and then some, but the taxes they generate cannot catch up at the same pace because of Proposal A limits.  

The other tax change also came because of the Great Recession. Sales taxes are sent to the state and a portion is redistributed to cities, villages, and townships. Part of it is mandated by the Constitution. A second formula, called the statutory share, ended when the state budget got tight. Now, instead of sharing that portion of the sales tax, the legislature simply distributes what it wants each year.

“And that really is funded about $600 million short of where it should be every year, and that’s compounded the billions and billions and billions of dollars over the last decade plus,” LaMacchia noted.

Actually, that shortfall has increased to $800 million this past year because the state has been getting a lot more money, but not sharing much of it.

LaMacchia said now municipalities also have to factor in the significant rise in inflation, currently above eight percent.

 “You really have this almost perfect storm of things that are taking what is already a limited supply of revenue sources and then adding these additional burdens and cost increases to them.”

Stephanie Leiser is a lecturer at the University of Michigan. She works with a regular survey of municipal leaders through the Center for Local, State, and Urban Policy. Lester Graham / Michigan Radio

Higher local taxes and fees

As cities are relying more on residents.

“The problem is that they have to turn to more regressive forms of property taxes, fines, fees and other charges, which really disproportionately harms families with low incomes and our black and brown communities,” said Rachel Richards, Fiscal Policy Director with the Michigan League for Public Policy.

 Families are still paying the same rate of sales tax that goes to state government, but their communities are getting less of it back. That’s led to municipalities relying more on millages. Citizens pay more in property taxes, which also leads to higher rent. Local governments are implementing more fees or increasing fees for utilities such as water and sewer.  It’s all an attempt by local government to keep something close to the same level of service. 

Richards said the legislature could give cities more money from its general fund to invest in water infrastructure. The idea is that the money would keep water rates affordable for families and avoid crisis-level situations when it comes to water and wastewater service.

Part of the water infrastructure crisis is the lack of political will to pay for it. If an elected official votes to spend money to improve a park or make living in a town obviously nicer, that earns voters’ respect. Voting to spend money on pipes under the ground when there’s not an obvious problem is less likely to win votes. But, waiting until there’s an obvious problem often results in a crisis either for a neighborhood or sometimes an entire city.

 

Get a loan (if you can)

 

In lieu of direct assistance, state government points to the revolving loan funds available for both drinking water and wastewater systems. Larger cities are often staffed with engineers and people who know how to complete the complex applications. But for smaller cities and villages, that’s just not reality.

“We talked to several communities that said it’s just a really difficult application process….. So just filling out the forms and the paperwork to actually get in the door and see if you can get this help is prohibitive for many communities,” said Stephanie Leiser who works with a regular survey of municipal leaders through the Center for Local, State, and Urban Policy.

Small towns would have to spend a lot of money to hire consultants to see if they even qualified for a loan from the revolving fund. The Michigan Department of Environment, Great Lakes, and Energy (EGLE) said it will help small towns determine whether it’s worth the effort.

 The other problems are, even though some loans are forgivable through the federally funded program, if it’s not, those small towns might not be able to afford the debt. Even if they determine they can afford the loan, the rates on the revolving loan fund are sometimes higher than the municipal bond market rate  for some towns. That’s something EGLE said it’s working to improve.

John LaMacchia confirms that just the application process is a major hurdle for many municipalities.

“You know, when we think about communities and their ability to apply for things like grant funding or loans that are out there, you know, sometimes they look at it and say, I don’t understand the process,” LaMacchia said. “And if they don’t understand the process, it makes it much harder for them to get into the process.”

The Michigan Municipal League Foundation launched a program to give those small towns access to experts for free through grants from the Joyce Foundation and the C.S. Mott Foundation. That’s expected to help

 The really bright light in Michigan’s infrastructure needs is a pile of federal money coming.

 “With the American Rescue Plan and resources that our local units are getting with the new Infrastructure Investment and Jobs Act puts more resources into the fold,” said LaMacchia.

 But that assistance is a one-time fix. And with deteriorating water infrastructure in cities large and small, it will take decades of new investment to recover. 

 “The backlog is so big, the deferred maintenance is so large that I doubt it’s going to make a huge difference,” Stephanie Leiser said, adding, “If you are not maintaining your infrastructure assets, you are at higher risk of disasters.”

CLARIFICATION: An earlier version of this story stated that children in Flint had been poisoned by lead-tainted water. No level of lead in the blood is considered safe, and lead is a poison. The CDC defines acute “lead poisoning” as a blood level > 45µg/dL. During the Flint water crisis, children in Flint had elevated lead levels in their blood and that does create harmful, lasting effects. The state health department defines elevated blood lead levels as > 3.5 µg/dL. After Flint switched water sources, the rate of elevated blood lead levels in Flint’s children doubled.

Read the full series

After Decades of Neglect, Bill Coming Due for Michigan’s Water Infrastructure

May 2, 2022
Federal and state governments begin to reverse course on underinvestment to address water’s true cost.
https://i0.wp.com/www.circleofblue.org/wp-content/uploads/2022/04/2022-04-14-Michigan-Waters-True-Cost-JGanter-1502-Edit-2500.jpg?fit=1600%2C912&ssl=1 912 1600 Brett Walton https://www.circleofblue.org/wp-content/uploads/2018/06/Circle-of-Blue-Water-Speaks-600x139.png Brett Walton2022-05-02 07:18:482022-05-11 11:32:01After Decades of Neglect, Bill Coming Due for Michigan’s Water Infrastructure

Many Rural Towns Have Neglected Drinking Water Systems for Decades

May 3, 2022
As some rural towns lose population and government funds shrink, some drinking water systems are one failure away from crisis.
https://i0.wp.com/www.circleofblue.org/wp-content/uploads/2022/05/2022-04-16-Michigan-Akron-JGanter-2855-Edit-2500.jpg?fit=1600%2C1055&ssl=1 1055 1600 Circle Blue https://www.circleofblue.org/wp-content/uploads/2018/06/Circle-of-Blue-Water-Speaks-600x139.png Circle Blue2022-05-03 08:01:362022-05-11 11:39:38Many Rural Towns Have Neglected Drinking Water Systems for Decades

Water Woes Loom for Michigan Suburbs, Towns After Decades of Disinvestment

May 3, 2022
Michigan cities rich and poor, big and small have been delaying maintenance on their water systems for decades. Now, even wealthy towns are suffering the consequences of past reluctance to pay for water system upkeep.
https://i0.wp.com/www.circleofblue.org/wp-content/uploads/2022/05/IMG_4497.jpeg?fit=1600%2C1200&ssl=1 1200 1600 Circle Blue https://www.circleofblue.org/wp-content/uploads/2018/06/Circle-of-Blue-Water-Speaks-600x139.png Circle Blue2022-05-03 08:01:082022-05-11 12:15:59Water Woes Loom for Michigan Suburbs, Towns After Decades of Disinvestment

Michigan’s 20th Century Water Systems Too Big For Its Shrinking City Populations

May 3, 2022
Cities around the Great Lakes region struggle with the cost of water maintenance and operation as their populations decline.
https://i0.wp.com/www.circleofblue.org/wp-content/uploads/2022/05/Flint-Retrospective.00_04_41_00.Still010.jpg?fit=1280%2C720&ssl=1 720 1280 Circle Blue https://www.circleofblue.org/wp-content/uploads/2018/06/Circle-of-Blue-Water-Speaks-600x139.png Circle Blue2022-05-03 08:02:292022-05-11 12:28:31Michigan’s 20th Century Water Systems Too Big For Its Shrinking City Populations

Michigan’s Lack of Septic System Regulations is Causing Problems for Some of its Most Pristine Lakes

May 4, 2022
Failing systems can allow contaminated water to seep through the earth into nearby bodies of water.
https://i0.wp.com/www.circleofblue.org/wp-content/uploads/2022/05/20211211_170039.jpg?fit=1600%2C720&ssl=1 720 1600 Circle Blue https://www.circleofblue.org/wp-content/uploads/2018/06/Circle-of-Blue-Water-Speaks-600x139.png Circle Blue2022-05-04 10:21:432022-05-11 12:33:40Michigan’s Lack of Septic System Regulations is Causing Problems for Some of its Most Pristine Lakes

High Cost of Water Hits Home

May 10, 2022
Rising rates hurt the state’s poorest residents.
https://i0.wp.com/www.circleofblue.org/wp-content/uploads/2022/05/2022-04-14-Michigan-Waters-True-Cost-JGanter-1717-2500.jpg?fit=1600%2C1037&ssl=1 1037 1600 Brett Walton https://www.circleofblue.org/wp-content/uploads/2018/06/Circle-of-Blue-Water-Speaks-600x139.png Brett Walton2022-05-10 07:31:142022-05-11 12:38:59High Cost of Water Hits Home

Some Michigan Water Systems Are Overbuilt, Underfunded. Are Mergers The Answer?

May 11, 2022
Customers get cheaper, cleaner water when communities share the cost of infrastructure.
https://i0.wp.com/www.circleofblue.org/wp-content/uploads/2022/05/2022-04-15-Michigan-Waters-True-Cost-JGanter-2482-2500.jpg?fit=1600%2C959&ssl=1 959 1600 Circle Blue https://www.circleofblue.org/wp-content/uploads/2018/06/Circle-of-Blue-Water-Speaks-600x139.png Circle Blue2022-05-11 08:00:302022-05-11 12:42:00Some Michigan Water Systems Are Overbuilt, Underfunded. Are Mergers The Answer?

Michigan’s ‘Very Big Opportunity’ in Infrastructure Windfall

May 11, 2022
More communities gain access to the largest federal infusion in a half-century.
https://i0.wp.com/www.circleofblue.org/wp-content/uploads/2022/05/2022-04-15-Michigan-Waters-True-Cost-JGanter-2460-Edit-2500-2.jpg?fit=1600%2C742&ssl=1 742 1600 Brett Walton https://www.circleofblue.org/wp-content/uploads/2018/06/Circle-of-Blue-Water-Speaks-600x139.png Brett Walton2022-05-11 08:27:442022-05-11 13:50:49Michigan’s ‘Very Big Opportunity’ in Infrastructure Windfall

Water’s True Cost

The Great Lakes News Collaborative includes Bridge Michigan; Circle of Blue; Great Lakes Now at Detroit Public Television; and Michigan Radio, Michigan’s NPR News Leader; who work together to bring audiences news and information about the impact of climate change, pollution, and aging infrastructure on the Great Lakes and drinking water. This independent journalism is supported by the Charles Stewart Mott Foundation. Find all the work here.

Related

Recent Posts

  • Water’s True Cost Photo Essay
  • HotSpots H2O: As Water Systems Fail in Pakistan, Heat Wave Begets A Health Crisis
  • Federal Water Tap, May 23: House Committee Advances Water Resources Bill
  • Power through the Adirondack Park
  • The Stream, May 18, 2022: How Some Cities in the American West Have Ample Water Supplies Amid Drought

Subscribe: Weekly Waternews

* indicates required
Please also subscribe me to the daily Stream
Please also subscribe me to the Federal Water Tap

© 2022 Circle of Blue – all rights reserved
Terms of Service | Privacy Policy

Donate to Circle of Blue
Federal Water Tap, May 9: Interior Unveils Lake Powell Protection MeasuresWhat’s Up With Water — May 10, 2022 Scroll to top

This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies.

OKLearn more

Cookie and Privacy Settings



How we use cookies

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

Essential Website Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

Google Analytics Cookies

These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visit to our site you can disable tracking in your browser here:

Other external services

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

Other cookies

The following cookies are also needed - You can choose if you want to allow them:

Accept settingsHide notification only
Make an impact this #GivingNewsDay
Journalism with this kind of impact is free to consume but costly to produce.
Support fact-based journalism with your tax-deductible donation
For a limited time, NewsMatch will match your gift, dollar for dollar
Support Independent Journalism
You have the power to inform the world's most important decisions
with your tax-deductible donation
 Tweet
 Share
 Copy
 E-mail
 Tweet
 Share
 Copy
 E-mail
 Tweet
 Share
 LinkedIn
 Reddit
 Copy
 E-mail
 

Loading Comments...