Local governments bore steep cuts in state revenue-sharing payments in the 2000s as sales tax collections lagged and lawmakers siphoned off money to deal with budget deficits.
Now as the economy recovers and the budget stabilizes, Michigan Gov. Rick Snyder is proposing a 15 percent increase in the next budget.
He once cut statutory shared revenue to cities and townships by a third.
Snyder wants to significantly boost payments to counties as well, giving 74 eligible counties their maximum funding instead of the 80 percent ceiling distributed this fiscal year.
Cuts in revenue sharing can lead to fewer police and firefighters and other cutbacks in local services.
Local officials welcome the call for increased revenue sharing but say Lansing has a ways to go to fully restore funding.