A majority of Michigan city and village officials say they are concerned about the lack of budgeting expertise among the elected officials in their communities as they deal with rising economic and political uncertainty and challenging state and federal budgeting requirements.

Those are among the top concerns expressed by respondents in the latest installment of the Michigan Public Policy Survey conducted by the University of Michigan’s Center for Local, State, and Urban Policy.

The high level of concern related to the expertise of elected officials in cities (56%) and villages (53%) outpaced the concerns of officials in counties (42%) and townships (36%). Around a third of both cities and villages also express concern about lack of staff expertise, also higher than their county and township counterparts.

As might be expected, communities experiencing high fiscal stress are more likely to report concerns about budgeting expertise. However, even in places that report low fiscal stress, 24% are concerned about staff expertise and 37% are concerned about the budgeting capabilities of their elected officials.

“Budgeting and financial planning is tricky even in the best of times, and now with so many headwinds and layers of uncertainty facing local governments, there’s just less room for error,” said Stephanie Leiser, director of CLOSUP and one of the report’s co-authors.

“If you don’t have the expertise to successfully apply for state or federal grants, you leave money on the table. If you don’t have the expertise to make decisions about issuing debt (to finance capital projects like fixing roads, water system improvements and recreation facilities), your taxpayers will end up paying thousands or millions in unnecessary interest payments.”

Another top concern emerging from the survey is meeting state and federal budgeting mandates, such as reporting or match requirements. Although jurisdictions with larger or more sophisticated budgets are most likely to raise such concerns, smaller communities aren’t immune: County officials (84%) are most likely to express concern, followed by cities (76%), villages (64%) and townships (54%).

Generating more concern across the board are worries about factors outside local control, such as economic downturns or lingering inflation. These external factors emerged as a concern for 71% of respondents.

“A majority of Michigan’s local leaders also tell us they are concerned about how their budgeting process would cope with an emergency or unforeseen cost, such as a cybersecurity breach or a natural disaster,” said Debra Horner, the survey’s senior program manager. “Many feel like they wouldn’t have the capacity to handle an emergency, and it’s an area where local governments might benefit from specific guidance and support from the state.”

Survey leaders sought to learn from officials from more than 1,300 counties, cities, villages and townships across the state about challenges they might be facing in their budgeting process. It was part of a larger survey conducted April 7-June 12, 2025.