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jobs most suited for the chronicallyjob- tan region.That is articular) true in South- One emerging, and particularlyseri-
<br /> less—the
<br /> ,
<br /> 9 particularly
<br /> entry level and service jobs re- east Michigan for three reasons: ous, public finance element of urban
<br /> quiring fewer learned skills. Low density 1)the property tax is such a dominant factor sprawl concerns the "true cost"of devel-
<br /> fringe development stymies implementa- in the region's public finance process; opment. In the past, federal, state and
<br /> tion of public transit service,effectively cutt- 2)there is such fragmentation of local gov- local governments subsidized develop-
<br /> ing off those jobs from urban core residents ernment (there are 234 counties, cities, ment—through public construction of
<br /> who are most available for the jobs. An villages and townships plus 115 local such infrastructure as water and sewe�
<br /> estimated 75%of the new jobs created in school districts, seven Intermediate lines, highways and local roads, school
<br /> Southeast Michigan during the 1980-90 pe- School Districts, nine community col- buildings, libraries, parks and other corn-
<br /> riod were located in developing areas with leges);and, munity facilities and amenities.That was,
<br /> no available transit service. 3)growth will be limited in future years,with everyone believed, government's job: to -
<br /> much of the growth that does occur provide such things. In an era of plentiful
<br /> The Economy and Sprawl being an intraregional shuffling of popu- resources, little thought was given to the
<br /> Southeast Michigan's regional econ- lation, households and commercial/in- fact that use of federal,state and local tax
<br /> omy must have steady growth to keep our dustrial development. funds meant that all taxpayers supported
<br /> region competitive with other regions, such growth, including those who did not
<br /> states and countries. But, many aspectsparticipate in nor benefit from such
<br /> of private sector growth carry with them Growth will be limited in . . growth.
<br /> serious public sector problems, particu- future years, with much of Today, there is increasing concern that
<br /> larly those related to "urban sprawl" the growth that does occur greatly limited public financial resources no
<br /> growth at the region's fringe and the par- longer can be used in such a profligate way,
<br /> allel disinvestment in older communities. being an intraregional simply paying for whatever infrastructure
<br /> Several factors are present in that bal- shuffling of population, seems to be needed for new development
<br /> ance of positive and negative impacts: households and to occur and prosper.
<br /> the continued shift from a manufacturing- commercial/industrial Assessing that "true cost" is not only
<br /> based economy to a service orientation; develo mens. difficult,it is revolutionary.But,in a dawning
<br /> fringe growth that results in urban aban- p era of "user fee"public financing,it may be
<br /> donment; public subsidies for fringe necessary to view the costs of supporting
<br /> growth but not for urban redevelopment Because of the strong reliance on the fringe growth as requiring user fees on an
<br /> growth; mismatches between job loca- property tax, delivery of community ser- increasingly larger scale, rather than tradi-
<br /> tions and worker opportunities for hous- vices is largely dependent on a tional subsidies.
<br /> ing and/or transportation; an opportunity community's tax base(its "State Equalized Part of past practice in subsidizing
<br /> for benefitting from the Canadian/U.S. Valuation"or SEV). Developing communi- growth was the practice of the federal
<br /> Fair Trade Agreement that is slipping ties must aggressively seek growth to raise government in supplying grants, loans
<br /> away from the region; a public decision- the SEV and, as a result, the resources and revenue sharing funds to local corn-
<br /> making process that often produces good available for providing services. Because munities. These funds were used to re-
<br /> local decisions that are bad for other corn- much of that growth has contributed to the build urban infrastructure,to build devel.*
<br /> munities and authorities. abandoning of older urban communities, opment-driven new infrastructure and to
<br /> Over the past 25 years, the region's those older communities see their SEV's address social problems that expanded in
<br /> economy has undergone a structural shrinking, causing service cuts that make older urban areas left behind by those
<br /> change in its shift from a manufacturing them even less able to compete for the who could afford to move home or busi-
<br /> to a non-manufacturing, service-based growth or development that undergirds de- ness to the flourishing fringe. Paradoxi-
<br /> orientation. At the same time there con- livery of necessary services. cally, the strong increase in such prob-
<br /> tinues to be a major shift in the location of )ems over the past decade has coincided
<br /> jobs, which is reinforced by shifts in the with an equally strong movement by the
<br /> region's employment mix. Communities must federal government to walk away from
<br /> Growth in the nonmanufacturing part of aggressively seek growth to such programs, either transferring them
<br /> the region's economy is led by new jobs , to state or city governments(without corn-
<br /> in the service sector, with that sector's raise the SEV andas a panion funding)or simply abandoning the
<br /> share of the region's total employment result, the resources programs altogether. Of particular con-
<br /> growing from 18%in 1975 to 35%in 1980. available for providing cern is elimination of federal programs in
<br /> It is expected to consist of 43%of the total services. housing, education, transportation and
<br /> employment in 2010. job training, all of which traditionally have .
<br /> Related to growth in the service sector helped level the playing field for older
<br /> is the major increase in the suburbaniza- The centrifugal push of residents and communities attempting to compete for
<br /> tion of all jobs. In 1965, 68% of the businesses outward drains economic vital- muchneeded re-development.
<br /> region's total employment was located in ity from the older areas, resulting in further Recent federal rules and regulations,
<br /> Wayne County, including about 45% in disinvestment. The resulting shrinkage in moreover, often place new responsibilities
<br /> the City of Detroit. By 1990, Detroit's tax base reduces the ability of older corn- on cities, without providing companion
<br /> share of the region's jobs had dropped to munities to repair, maintain and operate funding to carry out the transferred pro-
<br /> 18%. Employment in the suburbs grew existing infrastructure,such as stormwater grams. As a result, states and cities are
<br /> strongly during the past 25 years, led by and sanitary sewers. Continued outward required to allocate portions of their already
<br /> Oakland County, which increased from growth means the region must keep invest- scarce resources to comply with such man-
<br /> 12%to 30%in share of the region's jobs. ing public funds in construction of new in- dates, at the expense of either existing
<br /> frastructure even while the existing infra- programs or existing infrastructure mainte-
<br /> Public Finance and Sprawl structure is underutilized.At least,that has nance.
<br /> Public finance plays a significant role in been the history of urban fringe develop- Further, state governments are unable to�
<br /> shaping growth patterns in any metropoli- ment. help local governments in the face of than
<br /> diminished federal role because of their own
<br /> 8 Planning&Zoning News©/November 1991
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