Using financial data reported to the State of Michigan in 2024, a new report from CLOSUP's Fiscal Health Project provides an annual update on Michigan local government fiscal health. This report analyzes local government data to develop a set of indicators to look at cash, budgetary, long-term, and service solvency for counties, cities, villages, and townships in Michigan.
The report finds that Michigan local governments remain fiscally stable, though signs of emerging strain are becoming more evident. While fund balances and operating performance remain solid overall, cash reserves are declining as pandemic-era federal aid winds down. Indicators of long-term solvency show modest improvement, but rising debt per capita and persistently underfunded pension and retiree health obligations continue to weigh on many jurisdictions. Fiscal conditions remain uneven across government types and sizes, underscoring the importance of continued monitoring as revenue constraints and expenditure pressures evolve.
