In Michigan, the ill fated revenue sharing initiative known as the Economic Vitality Incentive Program (EVIP), a “Carrot and a stick” approach to passing down state revenue sharing dollars to local units of government is dead – – or is it?

The 2015 Approved Appropriations Bill tells a little bit of a different story.

Yes – EVIP by name (the phrase and acronym) is gone!!  Hooray!

The requirement started off as a novel idea, but the execution, and eventual audit ‘nit-picking’ turned it into a downer!

Category 2 (Shared Services) and Category 3 (Compensation and Unfunded Liabilities) are COMPLETELY DEAD and nowhere to be found in the Appropriations Bill this year.

Just when you thought it was safe to come outside…

So now that the winter is over and many local units are planning to spend precious resources on fixing roads, the realities of basic economic principles are going to come into play and cost us even more.

There are only so many road contractors and asphalt plants—and the abundance of major road projects are going to put a damper on unplanned but direly needed repairs.

Here’s why: remember that economics 101 class?  When the demand curve shifts to the right and supply is fixed, price goes up.

We suspect that there will be at least a 20 percent increase in the cost of road projects based on this dynamic.  Even on jobs that were previously quoted, unless a contract has been executed, those quotes will most likely not stand.

So it may be time to look at some best practices, which may be found in the Munetrix Government Collaboration & Best Practices database.

Munetrix has transformed itself from a transparency data-warehouse to a comprehensive Software-as-a-Service Platform in 2013.

We have launched a host of new features available to all users with level 3 access

BudgetBuilder

The BudgetBuilder tool is designed to provide a quick method of creating a top-down budget or forecast for multi-year budgeting. Users can quickly test a variety of revenue, cost and service assumptions to see where they will take a city’s or school district’s financial position in the future. Predictions are supported with easy-to-understand graphics, because, as we all know, “a picture is worth a thousand words”. BudgetBuilder is great for allowing municipalities and school districts to build a fiscal roadmap, with up to five scenarios per year that enable administrators to test the implications of assumptions. The tool is great for internal or public participatory budgeting workshops, clearly displaying the outcomes of assumptions graphically and instantaneously.

What do Munetrix and Facebook have in common?

More than you might think.

Unlike Facebook, Munetrix is all about productivity. Munetrix is a firm believer that there is no value to reinventing the wheel.  What we believe is valuable, however, is that sharing the design and schematics of the invention of the wheel so that others can benefit from it is important.

That’s why Munetrix, in addition to hosting powerful financial and transparency forecasting tools, is designed to function as a socially networked collaborative hub for school and municipal administrators.  A special web-based portal and database inside Munetrix now stores more than 800 best practices and ideas that are searchable for others to learn from.

Local government administrators and employees can search the common database by over 30 functional or departmental filters to discover unique collaborations that saved local governments or school districts time and money.  

Image source: Wikipedia

As mayor pro-tem for Auburn Hills I often receive emails from residents, and recently I received one from a concerned citizen asking why the roads in his neighborhood were so bad and what I was going to do about it.

Most residents don’t understand the difference between a state, county or local road.  They just know that when their tire blows out—they are not happy!

Surprises.  We all hate them when it comes to budgets.

Most local units of government have been pulling themselves up by the bootstraps since the impacts of the Great Recession.  But the uncertainty of Mother Nature has thrown many for a frozen loop this year.

How do you budget for snowiest January ever?

Most local units have used 60-70 percent of their road salt half way through the winter, not to mention overtime hours, wear and tear on equipment, water main breaks, and potholes.

And the worst is not over.  Regardless of how much snow we will still get, and no matter how cold it stays, the eventual spring thaw will wreak havoc on the condition of the roads come April showers and May flowers.

So what’s an administrator to do?  Here are six best practices that might make your winter doldrums more palatable.

1. Monitor your departmental budget monthly to actual expenses so there are no fiscal surprises.
2. Develop budget recovery plans now, using up to a three-year outlook on where to pull the revenue from.
3. Communicate with residents before the roads turn to mush.  Let them know that this will be a rough spring when it comes to road conditions, and to use as much caution as possible (and to be patient).
4. Pool resources (collaborate) with neighboring communities to avoid any overlap in maintenance of lane miles.  If your trucks have to travel over a neighboring community’s road to reach a destination, consider working out a financial arrangement to be able to cover each other’s area and avoid duplication.
5. If you are not already doing so, consider brine solutions to slow down the consumption of your salt.
6. Develop an asset management plan so you know ahead of time which roads may be most problematic, and which water mains may be suspect due to age or materials.

At the end of the day, roads and infrastructure maintenance are one of those “must perform” services that any local government has to do regardless of the circumstances.

Munetrix can help you understand where you stand in relation to other local governments’ operating expenditures for your DPW expenditures.  If you see that a peer has a lower operating cost per capita, or other measure, consult with them to find out what they are doing that might help you dial in your services or costs to become more efficient.  We all need to learn from each other, and Munetrix is an enabler in that regard.

Also, use data to tell your story, and make sure you understand what your residents must have, would like to have and could care less about by conducting bi-yearly citizen surveys.  Munetrix can steer you to services that perform these surveys.

In any event, over-communicate and drive the story.

Why? Because nobody likes surprises.

Author: Bob Kittle
Bob Kittle is the President and Co-founder of Munetrix.com

According to an Oakland Press’ editorial in the November 10, 2013 Open Forum, Michigan Republican state Rep, Lisa Posthumus Lyons is proposing legislature that would change the color-coded method Michigan currently uses to rate local schools to a single letter grade matching the report card formats used on K-12 education.

In today’s world of tablets and technology, visualization is an effective way to communicate performance management. Michigan’s Governor Snyder has instituted visual dashboard metrics into virtually every department within the state, municipalities and schools notwithstanding.  People understand red = bad and green = good, and gradients in between are somewhere between good and bad, so long as the scale is shown in context to the scoring system.

Munetrix, a fiscal measurement and grading transparency website for local governments and schools, uses this methodology quite effectively.  From a fiscal stability standpoint, the Munetrix scoring methodology translates complicated financial data into a simple, visual snapshot that anybody can understand – even using the “lime green” that Ms. Posthumus Lyons believes will confuse parents.

We use this method because people easily understand simple color-based data representations and we would suggest, rather than throwing the baby out with the bathwater, the Michigan Legislature look at successful implementations of standardized metrics and work with data in the way people digest information today: with their eyes.

Besides, when kids go beyond the K-12 education system, letter grades go out the window and are replaced with a 4.0 scale.

Bob Kittle, President & CEO Munetrix

Are we failing the youth of this nation?

No, this is not a POD song tribute… more of a commentary on the education system as a whole. It is my humble opinion that the attempts at making students more “well-rounded” have most definitely had the reverse effect.

The argument for the past 20 or 30 years is that introducing students to a greater variety of topics will increase their ability to get a better job, contribute to society, and/or possibly be a better person.  I do not necessarily disagree with this sentiment. The focus on it has become far too great, much to the detriment of those exposed to it.

Trust me, this isn’t a fun argument to have. You try telling people that their kid should learn LESS. Very few positive reactions, let me tell you. Even so, I believe it is a conversation worth having.