Watch how your city or township is going to increase your local taxes.
This could happen anytime soon.
A Republican-led legislative committee quickly approved a bill Tuesday that would force local governments to fund employee retirement accounts.
This may sound like something that does not concern you or some bureaucratic thing; it is not and it has immediate affect on you. Here is why you should care.
Over the years, cities and townships have promised its employees regiment plans, but most have failed to contribute money to it. Now that employees are retiring, local governments are faced with the obligations of coming up with the money. Even those who have contributed to the fund, do not have all of the money needed. The estimated liability amounts to $7.4 billion.
Where did that money would come from? Your pockets, either in a form of cutting programs and services or rasing taxes.
Now that fulfilling the obligation would become a law, local governments have no choice but to come up with the money. We do not anticipate any bailouts from the state or the federal government on this shortfall.
We recommend that you pay attention to your city or township budget to keep track of how they are spending your money.