Why it Matters: This indicator assesses the size of a unit's public sector relative to its ability to generate revenues. A unit that scores relatively high on this variable indicates a unit that has a large public sector relative to the size of its tax base. Units with high scores on this indicator may wish to decrease this ratio through cutting expenditures, providing more efficient delivery of services, and/or attracting new residents or businesses that will increase the tax base. This indicator has no time lag and deals solely with data from within the same year. To compute this variable, general fund expenditures are divided by taxable value. This is the only variable for which separate standards are used. A standard of 5% is used for cities and villages and 1% for townships and counties. Units with ratios above the standard receive a 1 and those below score a 0.
Data Source: The historical data presented has been loaded from information provided by the State Department of Treasury. Current and future year data has been entered by the municipality itself based on current budget and forecast information, or by Munetrix from available audited or budget information found in the public domain.