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jobs most suited for the chronically job- tan region.That is particularly true in South- One emerging, and particularly seri- less—the entry level and service jobs re- east Michigan for three reasons: ous, public finance element of urban quiring fewer learned skills. Low density 1)the property tax is such a dominant factor sprawl concerns the "true cost"of devel- fringe development stymies implementa- in the region's public finance process; opment. In the past, federal, state and tion of public transit service,effectively cutt- 2)there is such fragmentation of local gov- local governments subsidized develop- 0off those jobs from urban core residents ernment (there are 234 counties, cities, ment—through public construction of o are most available for the jobs. An villages and townships plus 115 local such infrastructure as water and sewer estimated 75% of the new jobs created in school districts, seven Intermediate lines, highways and local roads, school Southeast Michigan during the 1980-90 pe- School Districts, nine community col- buildings, libraries, parks and other com- hod were located in developing areas with leges);and, munity facilities and amenities.That was, no available transit service. 3)growth will be limited in future years,with everyone believed, government's job: to • - much of the growth that does occur provide such things. In an era of plentiful The Economy and Sprawl being an intraregional shuffling of popu- resources, little thought was given to the Southeast Michigan's regional econ- lation, households and commercial/in- fact that use of federal,state and local tax omy must have steady growth to keep our dustrial development. funds meant that all taxpayers supported region competitive with other regions, such growth, including those who did not states and countries. But, many aspects participate in nor benefit from such of private sector growth carry with them Growth will be limited in . . growth. serious public sector problems, particu- future years, with much of Today, there is increasing concern that larly those related to "urban sprawl" the growth that does occur greatly limited public financial resources no growth at the region's fringe and the par- longer can be used in such a profligate way, being an intraregional simplypayingfor whatever infrastructure allel disinvestment in older communities. Several factors are present in that bal- shuffling of population, seems to be needed for new development ance of positive and negative impacts: households and to occur and prosper. the continued shift from a manufacturing- commercial/industrial Assessing that "true cost" is not only based economy to a service orientation; difficult,it is revolutionary.But,in a dawning fringe growth that results in urban aban- development. era of "user fee"public financing,it may be donment; public subsidies for fringe necessary to view the costs of supporting growth but not for urban redevelopment . Because of the strong reliance on the fringe growth as requiring user fees on an growth; mismatches between job loca- property tax, delivery of community ser- increasingly larger scale, rather than tradi- tions and worker opportunities for hous- vices is largely dependent on a tional subsidies. ing and/or transportation; an opportunity community's tax base(its "State Equalized Part of past practice in subsidizing for benefitting from the Canadian/U.S. Valuation"or SEV). Developing communi- growth was the practice of the federal Fair Trade Agreement that is slipping ties must aggressively seek growth to raise government in supplying grants, loans away from the region; a public decision- the SEV and, as a result, the resources and revenue sharing funds to local corn- king process that often produces good available for providing services. Because munities. These funds were used to re- build decisions that are bad for other corn- much of that growth has contributed to the build urban infrastructure, to build Bevel munities and authorities. abandoning of older urban communities, opment-driven new infrastructure and to Over the past 25 years, the region's those older communities see their SEV's address social problems that expanded in economy has undergone a structural shrinking, causing service cuts that make older urban areas left behind by those change in its shift from a manufacturing them even less able to compete for the who could afford to move home or busi- to a non-manufacturing, service-based growth or development that undergirds de- ness to the flourishing fringe. Paradoxi- orientation. At the same time there con- livery of necessary services. cally, the strong increase in such prob- tinues to be a major shift in the location of ems over the past decade has coincided jobs, which is reinforced by shifts in the with an equally strong movement by the region's employment mix. Communities must federal government to walk away from Growth in the nonmanufacturing part of aggressively seek growth to such programs, either transferring them the region's economy is led by new jobs to state or city governments(without corn- in the service sector, with that sector's raise the SEV and, as a panion funding)or simply abandoning the share of the region's total employment result, the resources programs altogether. Of particular con- growing from 18%in 1975 to 35%in 1980. available for providing cern is elimination of federal programs in It is expected to consist of 43%of the total services. housing, education, transportation and employment in 2010. job training, all of which traditionally have . Related to growth in the service sector helped level the playing field for older is the major increase in the suburbaniza- The centrifugal push of residents and communities attempting to compete for tion of all jobs. In 1965, 68% of the businesses outward drains economic vital- muchneeded re-development. region's total employment was located in ity from the older areas, resulting in further Recent federal rules and regulations, Wayne County, including about 45% in disinvestment. The resulting shrinkage in moreover, often place new responsibilities the City of Detroit. By 1990, Detroit's tax base reduces the ability of older com- on cities, without providing companion share of the region's jobs had dropped to munities to repair, maintain and operate funding to carry out the transferred pro- 18%. Employment in the suburbs grew existing infrastructure, such as stormwater grams. As a result, states and cities are strongly during the past 25 years, led by and sanitary sewers. Continued outward required to allocate portions of their already Oakland County, which increased from growth means the region must keep invest- scarce resources to comply with such man- 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 frastructure even while the existing infra- programs or existing infrastructure mainte- Sublic Finance and Sprawl structure is underutilized.At least,that has nance. Public finance plays a significant role in been the history of urban fringe develop- Further, state governments are unable to shaping growth patterns in any metropoli- ment. help local governments in the face of that diminished federal role because of their own 8 Planning&Zoning NewsO/November 1991