DIGEST OF INTRODUCED BILL
Local government reorganization and merger. Requires the department of local government finance to develop criteria for making an adjustment to allow a political subdivision to retain a part of its levy and budget that would otherwise be reduced because of savings from a government reorganization or township merger. Provides that the amount of such an adjustment may not exceed a specified percentage of the savings or reduction realized in the first full year of operation after the merger or reorganization. Provides that the percentage is 50% in the first year of the adjustment and phases down to 10% in the fourth year of the adjustment and thereafter. Provides that the fiscal body of the reorganizing political subdivision or new township shall determine and certify to the department of local government finance the amount of the adjustment that the political subdivision or new township wishes to accept. Provides that in the case of a reorganization under the government modernization statutes, the amount of any adjustment accepted by a reorganized political subdivision must comply with the reorganization agreement.