Genesee County's Struggle to Survive

Abstract

This research paper is based on the premise that Genesee County, like many other local units of government, has been experiencing on-going fiscal stress for a number of years, and that Genesee County has reacted to that stress the same way other governments facing the same kind of economic situation have reacted. The paper analyzes the fiscal condition of Genesee County from 1973 to 1992 using Levine's four cell typology to analyze the causes of public organization decline. The analysis concludes that the major reason for fiscal stress and organizational decline in Genesee County government is the result of external political and economic conditions. Declining purchasing power, loss of revenue from the federal government, litigation costs and judgements on the operation of the County jail, a loss of revenue due to a lawsuit from the County's major employer, General Motors and long-term economic decline have been the major contributors to the fiscal stress experienced by the County. Genesee County has responded to fiscal stress in much the same way research concludes that many local units of government have responded. The County has shifted general operating responsibilities to other funding sources when possible. Special millages have been approved by the voters for specific services. User fees have been increased. Funding for services provided outside of county government has been significantly curtailed. Wage freezes have been negotiated with the union and an early retirement program was implemented. While personnel has declined over the twenty year period, elimination of services and massive lay-offs have been only considered as a last alternative. The paper concludes by reviewing a number of potential solutions to improve the financial condition of the County. The paper explores continued elimination of service delivery, development of organizational incentives to reduce costs, reorganization of county and local government into a metropolitan governmental structure and, lastly, state legislative action to restructure public financing of county government. The conclusion is that the most feasible solution to county fiscal stress is to develop a statewide solution which restructures public financing of county government, placing such organizations in a strong fiscal position which recognizes the importance of the service provided by county government to its citizenry.