If you’ve been watching the headlines in The Monroe Evening News, you know the city of Monroe has been working on some difficult budget discussions. This is a scenario that many other municipalities across the state are facing, because lower property values mean lower property taxes. But there aren’t many options because there isn’t enough money elsewhere to help out.

The Detroit News reports today: Home value drop hurting cities

A snippet:

“This will be the biggest financial challenge in Michigan history,” said Mark Vanderpool, city manager of Sterling Heights.

“The state is going to have to work with cities to solve this problem. Some will have to drastically cut services and quality of life will quickly erode.”

Vanderpool predicted votes on millage increases across the state and “service cuts in the big three departments: police, fire and public works.”

The last time property values declined statewide was in 1962, state Treasury officials said.

Generally, about 60 percent of municipalities’ operating budgets are bankrolled by property taxes.